The market value of Machen leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is below than 80 years
Leasehold premises in Machen with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Machen,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Machen valuers.
Off the back of protracted discussions with the landlord of her leasehold flat in Machen, Elizabeth initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction was finalised in April 2010. The landlord’s fees were kept to an absolute minimum.
Last month we were called by Mr and Mrs. J Rogers , who took over the lease of a newly refurbished apartment in Machen in July 1998. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical premises in Machen with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired on 17 August 2104. Taking into account 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2014 we were contacted by Mr and Mrs. H White who, having took over the lease of a recently refurbished flat in Machen in September 2012. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar homes in Machen with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced annually. The lease came to a finish in 2093. Considering the 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.