Chances are that if you own a flat in Cefn Mawr you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Cefn Mawr leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful negotiations with the landlord of her studio flat in Cefn Mawr, Isabel commenced the lease extension process as the eighty year threshold was rapidly approaching. The transaction was finalised in November 2011. The freeholder’s charges were kept to an absolute minimum.
Last month we were called by Dr Tommy Garcia , who was assigned a lease of a ground floor apartment in Cefn Mawr in April 1995. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Cefn Mawr with 100 year plus lease were valued around £201,200. The mid-range amount of ground rent was £55 billed per annum. The lease finished on 7 October 2082. Having 56 years left we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Mr Edward Mercier completed a purpose-built apartment in Cefn Mawr in November 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Cefn Mawr with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired in 2102. Considering the 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.