Machen leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Flat owners in Machen will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Machen with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
Lender | Requirement |
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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; |
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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Machen leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Eliot, started to get near to the eighty-year threshold with the lease on his first floor flat in Machen. Having bought his flat two decades ago, the unexpired term was of little importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Eliot arranged for a lease extension at the eleventh hour in June. Eliot and the landlord subsequently agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £950.
Dr J García took over the lease of a first floor apartment in Machen in August 1999. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar flats in Machen with an extended lease were valued about £205,000. The average ground rent payable was £50 collected quarterly. The lease elapsed on 18 March 2102. Considering the 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
Last year we were phoned by Dr Joshua Morris , who purchased a studio apartment in Machen in September 2002. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar properties in Machen with a long lease were valued about £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease concluded in 2091. Having 67 years outstanding we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.