When it comes to residential leasehold property in Machen, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Residents in Machen with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has under 80 years remaining, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Machen with over 100 years remaining 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Machen leasehold, as your property will be more valuable and saleable 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 protracted discussions with the landlord of her basement flat in Machen, Molly initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work was concluded in November 2007. The landlord’s fees were negotiated to about 500 pounds.
Last Autumn we were contacted by Mr S Bonnet , who moved into a first floor flat in Machen in June 1998. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Machen with an extended lease were worth £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2094. Taking into account 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Mr and Mrs. N Jones owned a basement apartment in Machen in September 2002. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative premises in Machen with an extended lease were in the region of £213,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease end date was in 2083. Taking into account 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.