Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cwmbran. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Cwmbran have the right to extend the lease for a further 90 years under statute. Please give due deliberation before putting off your Cwmbran lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Cwmbran with over one hundred years unexpired on the lease are sometimes regarded as a ‘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 service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cwmbran can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Riley owned a high value apartment in Cwmbran on the market with a lease of just over 59 years unexpired. Riley on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Summer we were approach by Mr and Mrs. S Ricardo , who moved into a ground floor flat in Cwmbran in November 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Cwmbran with an extended lease were in the region of £176,200. The average ground rent payable was £65 billed yearly. The lease came to a finish on 24 April 2082. Having 56 years left we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus professional charges.
Dr M Michel took over the lease of a purpose-built flat in Cwmbran in October 2008. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Cwmbran with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease ran out on 21 January 2093. Considering the 67 years outstanding we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of fees.