On the balance of probabilities where you own a flat in Caerwent you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Caerwent 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 lawyer we work with provide it.
Off the back of protracted discussions with the freeholder of her basement apartment in Caerwent, Erin started the lease extension process as the 80 year threshold was swiftly advancing. The legal work was concluded in November 2006. The landlord’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. K King who, having moved into a one bedroom apartment in Caerwent in October 2005. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Caerwent with a long lease were valued around £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease termination date was in 2076. Having 50 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of costs.
Dr Alex Hall was assigned a lease of a purpose-built apartment in Caerwent in March 2005. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Caerwent with a long lease were worth £280,000. The average ground rent payable was £45 billed monthly. The lease terminated on 27 March 2096. Taking into account 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.