Cwmbran leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Cwmbran will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cwmbran,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 in-depth market knowledge and the close ties they enjoy with Cwmbran valuers.
Joshua was the the leasehold proprietor of a high value flat in Cwmbran being sold with a lease of a little over 72 years left. Joshua informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last month we were approach by Mr and Mrs. N Thomas , who was assigned a lease of a ground floor flat in Cwmbran in August 1996. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical residencies in Cwmbran with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed yearly. The lease concluded on 6 October 2092. Considering the 66 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.
Mr and Mrs. B Lambert acquired a purpose-built flat in Cwmbran in May 1996. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative flats in Cwmbran with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed on 20 May 2103. Considering the 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.