There is no doubt about it a leasehold property in Caerwent is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Caerwent will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Caerwent with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Caerwent,the lease extension solicitors 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.
Two years ago Harry, came dangerously near to the 80-year mark with the lease on his basement apartment in Caerwent. In buying his home 18 years ago, the length of the lease was of no interest. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Harry arranged for a lease extension at the eleventh hour in September. Harry and the freeholder via the management company eventually settled on an amount of £6,000 . If the lease had dipped below eighty years, the figure would have escalated by a minimum £1,125.
Ms I Fournier acquired a ground floor flat in Caerwent in January 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar homes in Caerwent with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 13 April 2083. Having 57 years left we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.
Mrs Harriet Johnson moved into a one bedroom flat in Caerwent in May 2009. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Caerwent with a long lease were worth £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed in 2103. Taking into account 77 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.