Cwmbran leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Cwmbran tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Cwmbran you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Cwmbran leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Cwmbran valuers.
Half a year ago Andrew, started to get close to the 80-year mark with the lease on his garden flat in Cwmbran. Having bought his flat two decades ago, the lease term was of little importance. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Andrew arranged for a lease extension at the eleventh hour in September. Andrew and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,000.
In 2014 we were called by Dr A Davis who, having was assigned a lease of a garden apartment in Cwmbran in March 2011. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Cwmbran with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 11 March 2099. Given that there were 73 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Autumn we were contacted by Dr L Bailey , who purchased a basement flat in Cwmbran in January 2000. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Cwmbran with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 collected per annum. The lease elapsed on 2 June 2079. Having 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of costs.