Cwmbran residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Cwmbran with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Yorkshire Building Society |
Lease extensions in Cwmbran can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Cwmbran lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy negotiations with the landlord of her leasehold flat in Cwmbran, Abbie initiated the lease extension process as the 80 year mark was rapidly coming. The lease extension completed in January 2006. The landlord’s charges were restricted to less than 450 GBP.
In 2010 we were contacted by Dr Omar Gray who, having owned a one bedroom flat in Cwmbran in May 2011. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Cwmbran with an extended lease were worth £290,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished on 14 November 2106. Taking into account 80 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Dr Y Torres bought a one bedroom apartment in Cwmbran in June 2004. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar properties in Cwmbran with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease terminated on 25 February 2086. Taking into account 60 years outstanding we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.