When it comes to long leasehold property in Glynneath, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Glynneath with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under 80 years remaining, under the relevant Act the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Glynneath with more than 100 years remaining on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Glynneath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted correspondence with the freeholder of her garden apartment in Glynneath, Eleanor started the lease extension process as the eighty year threshold was rapidly advancing. The legal work was concluded in July 2006. The landlord’s costs were negotiated to under 500 GBP.
Mrs P Peterson bought a basement flat in Glynneath in June 2006. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparable residencies in Glynneath with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed yearly. The lease expired on 23 August 2089. Given that there were 64 years remaining we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of costs.
Last month we were called by Dr O Kelly , who bought a recently refurbished apartment in Glynneath in April 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Glynneath with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 billed monthly. The lease elapsed on 18 January 2100. Having 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.