Cwmbran residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Cwmbran with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
During the course of the last few months Austin, came seriously near to the 80-year mark with the lease on his garden apartment in Cwmbran. Having purchased his flat 19 years ago, the length of the lease was of little bearing. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Austin arranged for a lease extension just in the nick of time in July. Austin and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If he had missed the deadline, the figure would have become more exhorbitant by at least £850.
Last month we were contacted by Dr Y Wood , who moved into a first floor apartment in Cwmbran in September 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Cwmbran with 100 year plus lease were valued around £208,200. The average amount of ground rent was £65 invoiced per annum. The lease finished in 2087. Given that there were 61 years remaining we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus fees.
Mr and Mrs. B Roux purchased a ground floor apartment in Cwmbran in September 2002. The question was if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in Cwmbran with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease came to a finish in 2098. Having 72 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.