The only way is down when it comes to Cwmbran lease terms. Cwmbran flats that have a residual term less than than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Cwmbran with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with undertake Cwmbran 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.
In the wake of 6 months of protracted correspondence with the landlord of her ground floor apartment in Cwmbran, Caitlin commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction was concluded in November 2008. The freeholder’s costs were kept to an absolute minimum.
Dr Liam Martínez completed a first floor apartment in Cwmbran in April 1997. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical properties in Cwmbran with an extended lease were valued around £166,400. The average ground rent payable was £60 invoiced monthly. The lease lapsed on 6 February 2080. Given that there were 54 years unexpired we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.
In 2014 we were contacted by Dr Omar Bonnet who, having purchased a newly refurbished flat in Cwmbran in June 1998. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparative homes in Cwmbran with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced monthly. The lease finished in 2091. Given that there were 65 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.