When it comes to long leasehold premises in Clydach, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems 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 gets disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Clydach with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years left, under the current legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to 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. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Clydach,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 experience and the close ties they enjoy with Clydach valuers.
Charlie owned a studio apartment in Clydach being sold with a lease of fraction over fifty eight years unexpired. Charlie on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr Tyler Thomas completed a garden flat in Clydach in November 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Clydach with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected per annum. The lease terminated in 2095. Considering the 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2012 we were e-mailed by Mrs Isabel Edwards who, having purchased a first floor apartment in Clydach in August 2009. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative properties in Clydach with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed on 4 April 2106. Considering the 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.