Glynneath leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Glynneath tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Glynneath you should investigate if your lease has between 70 and 90 years left. There are good reasons why a Glynneath leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Glynneath with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 conveyancer we work with provide it.
Finley was the the leasehold proprietor of a studio apartment in Glynneath on the market with a lease of a few days over 59 years remaining. Finley informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Dr Catherine Garcia took over the lease of a one bedroom apartment in Glynneath in October 1998. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Glynneath with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated in 2093. Given that there were 67 years unexpired we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including expenses.
Last Autumn we were approach by Dr L Collins , who purchased a purpose-built apartment in Glynneath in January 1996. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative premises in Glynneath with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease concluded on 21 February 2104. Given that there were 78 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.