With a long leasehold premises in Machen, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years remaining. Anyone in Machen with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than 80 years outstanding, under the current statute the landlord can calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with undertake Machen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing lengthy negotiations with the freeholder of her ground floor apartment in Machen, Freya initiated the lease extension process as the 80 year mark was rapidly advancing. The legal work was finalised in February 2008. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. Y Flores was assigned a lease of a studio apartment in Machen in November 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Machen with a long lease were in the region of £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease concluded on 15 May 2077. Considering the 52 years remaining we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
Last year we were e-mailed by Dr F François , who took over the lease of a one bedroom flat in Machen in October 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Machen with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease end date was in 2097. Having 72 years left we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.