Hirwaun leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hirwaun will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Hirwaun leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Following lengthy discussions with the landlord of her first floor flat in Hirwaun, Katherine initiated the lease extension process as the 80 year mark was rapidly coming. The transaction was finalised in June 2012. The freeholder’s charges were restricted to under 700 pounds.
Last month we were e-mailed by Dr R Garcia , who was assigned a lease of a one bedroom apartment in Hirwaun in April 1996. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical premises in Hirwaun with an extended lease were valued around £183,600. The average ground rent payable was £65 invoiced monthly. The lease terminated in 2083. Taking into account 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.
Last Summer we were e-mailed by Mr F Rogers , who owned a garden apartment in Hirwaun in April 1995. The question was if we could approximate the price would be to extend the lease by ninety years. Identical flats in Hirwaun with an extended lease were in the region of £245,000. The average amount of ground rent was £45 invoiced yearly. The lease expired in 2094. Considering the 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.