With a long leasehold property in Hay On Wye, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Hay On Wye with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant Act the landlord can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Hay On Wye 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 lawyer we work with provide it.
Hugo was the the leasehold proprietor of a conversion flat in Hay On Wye being marketed with a lease of just over sixty years unexpired. Hugo informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2009 we were e-mailed by Dr I Pérez who, having took over the lease of a one bedroom apartment in Hay On Wye in August 2001. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Hay On Wye with a long lease were worth £257,800. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2091. Considering the 65 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including professional charges.
Last month we were called by Mr and Mrs. L Adams , who acquired a basement flat in Hay On Wye in July 1999. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar homes in Hay On Wye with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease concluded on 5 August 2080. Having 54 years as a residual term we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.