As the length of the unexpired term of a Machen residential lease lessens so does its value and therefore the value of your property. If the lease has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Machen will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Machen leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Trailing lengthy negotiations with the freeholder of her two bedroom flat in Machen, Emily started the lease extension process just as the lease was nearing the all-important eighty-year mark. The legal work was finalised in June 2015. The landlord’s fees were negotiated to under six hundred GBP.
Mr and Mrs. K Evans completed a first floor flat in Machen in March 2007. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable homes in Machen with an extended lease were in the region of £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease ended on 15 February 2080. Considering the 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus costs.
In 2009 we were contacted by Dr Y Fournier who, having moved into a ground floor flat in Machen in July 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Machen with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out on 18 September 2100. Taking into account 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.