Glynneath 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 Glynneath tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Glynneath you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Glynneath with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Glynneath leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan owned a 2 bedroom apartment in Glynneath being marketed with a lease of just over 59 years left. Ethan informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were phoned by Dr Danielle Lee who, having acquired a ground floor apartment in Glynneath in May 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Similar homes in Glynneath with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 billed every twelve months. The lease lapsed in 2077. Having 52 years unexpired we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including costs.
Last year we were e-mailed by Dr T Bernard , who was assigned a lease of a first floor apartment in Glynneath in April 2000. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable premises in Glynneath with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired in 2088. Considering the 63 years unexpired we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.