Hirwaun leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Hirwaun will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Hirwaun with over one hundred years unexpired on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Hirwaun leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold proprietor of a conversion apartment in Hirwaun being marketed with a lease of just over 72 years left. Ryan on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. 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 £200 per annum. No ground rent would be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. B Nelson who, having took over the lease of a first floor apartment in Hirwaun in June 2007. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical residencies in Hirwaun with an extended lease were valued around £270,000. The average amount of ground rent was £55 collected annually. The lease ran out in 2102. Having 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Mr and Mrs. S Gray took over the lease of a garden apartment in Hirwaun in October 1997. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Hirwaun with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected yearly. The lease lapsed in 2082. Considering the 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus legals.