As the the remaining lease term of a Caerleon residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Caerleon will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Caerleon with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Caerleon,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caerleon valuers.
Two years ago Aiden, started to get close to the 80-year mark with the lease on his basement flat in Caerleon. In buying his flat two decades ago, the length of the lease was of minimal relevance. As luck would have it, he noticed he would soon be paying way over the odds for Extending the lease. Aiden was able to extend his lease at the eleventh hour last September. Aiden and the freeholder in the end agreed on a premium of £5,000 . If the lease had gone lower than 80 years, the price would have increased by at least £950.
Last Spring we were called by Mr and Mrs. C Clark , who purchased a one bedroom flat in Caerleon in April 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Caerleon with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired in 2101. Considering the 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
In 2014 we were approached by Mr and Mrs. T López who, having moved into a one bedroom flat in Caerleon in October 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Caerleon with a long lease were worth £250,400. The average ground rent payable was £65 collected every twelve months. The lease expiry date was on 1 April 2090. Considering the 64 years unexpired we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.