Caerwent leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Caerwent will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Caerwent with more than one hundred years remaining 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Caerwent,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caerwent valuers.
Last year Isaac, came precariously close to the 80-year threshold with the lease on his purpose- built flat in Caerwent. Having bought his flat twenty years ago, the lease term was of minimal bearing. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Isaac was able to extend his lease just in the nick of time in June. Isaac and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If the lease had fallen lower than 80 years, the premium would have escalated by a minimum £925.
Last year we were approach by Dr J Howard , who was assigned a lease of a newly refurbished flat in Caerwent in May 2008. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar flats in Caerwent with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2104. Given that there were 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. P Parker took over the lease of a one bedroom apartment in Caerwent in May 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Caerwent with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2093. Considering the 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.