With a domestic leasehold premises in Cilfynydd, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Cilfynydd with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years left, under the relevant statute the freeholder can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 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 many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Cilfynydd leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a 2 bedroom apartment in Cilfynydd on the market with a lease of fraction over 61 years outstanding. Harry informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Mr Adam David was assigned a lease of a newly refurbished flat in Cilfynydd in October 2005. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparative properties in Cilfynydd with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 9 September 2093. Having 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.
In 2013 we were approached by Mrs Morgan Clarke who, having acquired a one bedroom apartment in Cilfynydd in March 2005. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative properties in Cilfynydd with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 billed yearly. The lease expired on 11 November 2104. Having 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.