Hay On Wye 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 gets more expensive. Legislation has been in place for sometime now allowing qualifying Hay On Wye residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hay On Wye you must investigate if your lease has between seventy and ninety years left. There are good reasons why a Hay On Wye leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you better control over the value of your Hay On Wye leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy correspondence with the landlord of her two bedroom apartment in Hay On Wye, Anna commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension completed in May 2011. The landlord’s costs were kept to an absolute minimum.
In 2011 we were approached by Ms Sian Ricardo who, having purchased a first floor apartment in Hay On Wye in September 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar properties in Hay On Wye with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2095. Considering the 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Last Summer we were e-mailed by Dr Kayleigh Adams , who purchased a studio flat in Hay On Wye in September 2008. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Hay On Wye with 100 year plus lease were valued around £218,400. The average amount of ground rent was £60 billed every twelve months. The lease ran out in 2084. Having 59 years unexpired we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.