The re-sale value of a leasehold property in Cefn Mawr is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year mark. Leasehold Reform legislation enables Cefn Mawr qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Cefn Mawr 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.
Last October Dexter, came seriously close to the eighty-year threshold with the lease on his one bedroom apartment in Cefn Mawr. In buying his property two decades ago, the lease term was of minimal relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Dexter extended the lease just in the nick of time last May. Dexter and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he not met the deadline, the sum would have increased by a minimum £975.
In 2011 we were approached by Mr and Mrs. J Stewart who, having moved into a first floor flat in Cefn Mawr in September 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable premises in Cefn Mawr with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected yearly. The lease terminated in 2078. Given that there were 53 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last Spring we were phoned by Mrs Nicole King , who was assigned a lease of a ground floor flat in Cefn Mawr in April 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Cefn Mawr with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 4 February 2098. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.