The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Machen have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Machen lease extension. Shelving that expense today simply increases the price you will ultimately have to pay for a lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her basement apartment in Machen, Laura commenced the lease extension process as the 80 year mark was rapidly coming. The transaction completed in June 2014. The landlord’s costs were restricted to less than 600 pounds.
Mr and Mrs. R Martin owned a one bedroom apartment in Machen in April 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Machen with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease lapsed in 2089. Considering the 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
In 2013 we were e-mailed by Ms N Taylor who, having owned a studio flat in Machen in May 1997. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Machen with a long lease were worth £189,000. The average ground rent payable was £55 invoiced quarterly. The lease finished on 22 April 2078. Taking into account 53 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.