Cwmbran leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Cwmbran will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Cwmbran with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Evan was the the leasehold proprietor of a studio flat in Cwmbran on the market with a lease of just over 59 years unexpired. Evan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were e-mailed by Mrs W Hill who, having acquired a studio flat in Cwmbran in October 1999. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar residencies in Cwmbran with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 collected annually. The lease ran out in 2103. Considering the 78 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
Mr and Mrs. E Davis moved into a one bedroom flat in Cwmbran in February 2012. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative flats in Cwmbran with a long lease were in the region of £191,000. The mid-range ground rent payable was £65 billed quarterly. The lease ended on 8 August 2083. Having 58 years outstanding we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.