Machen leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Machen enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Machen you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered 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 any lease with more than 35 years unexpired, the premises will be equivalent in value to 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. |
| 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. |
| 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 |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Machen,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Machen valuers.
Last Autumn Felix, came very near to the eighty-year threshold with the lease on his first floor apartment in Machen. In buying his home two decades ago, the unexpired term was of little significance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Felix arranged for a lease extension just under the wire last April. Felix and the landlord who owned the flat above eventually settled on sum of £6,000 . If the lease had dipped below eighty years, the amount would have escalated by at least £950.
In 2010 we were e-mailed by Mr Eliot Davies who, having took over the lease of a ground floor apartment in Machen in November 2005. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative premises in Machen with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 9 May 2099. Given that there were 73 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were called by Mr and Mrs. R Cooper who, having took over the lease of a studio flat in Machen in July 1996. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative premises in Machen with an extended lease were valued about £240,600. The mid-range amount of ground rent was £65 billed monthly. The lease ran out on 1 April 2088. Considering the 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including legals.