Caerleon leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Caerleon will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society |
The conveyancing solicitors that we work with procure Caerleon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy correspondence with the landlord of her first floor flat in Caerleon, Jessica initiated the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was finalised in November 2009. The freeholder’s fees were negotiated to approximately five hundred GBP.
Mr and Mrs. F Nelson completed a one bedroom flat in Caerleon in April 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Caerleon with a long lease were in the region of £243,000. The average ground rent payable was £65 collected per annum. The lease terminated on 2 February 2089. Taking into account 63 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.
Mr and Mrs. D Gray took over the lease of a purpose-built apartment in Caerleon in September 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Caerleon with a long lease were worth £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed on 27 September 2078. Considering the 52 years remaining we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.