There is no doubt about it a leasehold flat or house in Machen is a wasting asset as a result of the shortening lease. If the lease has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Machen will meet the qualifying criteria; that being said a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Machen with more than 100 years left 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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Machen leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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.
Off the back of unsuccessful negotiations with the freeholder of her leasehold apartment in Machen, Holly commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was finalised in June 2009. The freeholder’s costs were restricted to a tad over six hundred GBP.
Last Christmas we were approach by Mrs P Adams , who purchased a first floor flat in Machen in May 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Machen with a long lease were in the region of £223,400. The average ground rent payable was £60 invoiced annually. The lease expired in 2084. Considering the 59 years unexpired we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus professional charges.
Last Spring we were e-mailed by Dr L Lewis , who moved into a one bedroom flat in Machen in October 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Machen with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 22 May 2104. Considering the 79 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.