On the balance of probabilities if you own a flat in Cefn Mawr you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cefn Mawr,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cefn Mawr valuers.
Harrison owned a high value apartment in Cefn Mawr being marketed with a lease of a little over 61 years left. Harrison on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Autumn we were approach by Dr R Robinson , who completed a newly refurbished apartment in Cefn Mawr in April 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Cefn Mawr with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease termination date was on 12 March 2096. Taking into account 70 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
Dr K Martinez moved into a recently refurbished apartment in Cefn Mawr in July 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative homes in Cefn Mawr with 100 year plus lease were valued around £218,400. The average ground rent payable was £60 billed every twelve months. The lease expired in 2085. Taking into account 59 years remaining we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.