The nearer a domestic lease in Cwmcarn nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Cwmcarn will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Cwmcarn with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Cwmcarn can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Cwmcarn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Nathan, started to get close to the 80-year threshold with the lease on his two bedroom flat in Cwmcarn. In buying his flat twenty years previously, the lease term was of little concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. Nathan was able to extend his lease just under the wire in August. Nathan and the landlord in the end agreed on sum of £5,000 . If the lease had slid to less than 80 years, the price would have escalated by a minimum £900.
In 2011 we were approached by Dr O Michel who, having was assigned a lease of a basement flat in Cwmcarn in January 2008. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar properties in Cwmcarn with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 9 September 2105. Taking into account 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
Mr and Mrs. S Adams moved into a first floor flat in Cwmcarn in March 2008. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar flats in Cwmcarn with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated on 5 January 2094. Given that there were 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.