Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Machen. Clearly, the length of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Machen have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Machen lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Machen can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Machen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Finn, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Machen. In buying his home 19 years previously, the unexpired term was of minimal concern. Fortunately, he noticed he needed to take action soon on Extending the lease. Finn was able to extend his lease just under the wire last April. Finn and the freeholder in the end agreed on a premium of £5,000 . If he had missed the deadline, the figure would have gone up by at least £950.
Last Winter we were phoned by Ms Catherine Ramírez , who acquired a garden apartment in Machen in June 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative residencies in Machen with an extended lease were worth £213,600. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 6 March 2083. Taking into account 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.
Mrs Megan Sánchez bought a purpose-built flat in Machen in September 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Machen with a long lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished in 2103. Having 77 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.