With a residential leasehold premises in Machynlleth, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Leasehold owners in Machynlleth with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has below 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Machynlleth can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Machynlleth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Harry, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Machynlleth. Having bought his property twenty years previously, the lease term was of no bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. Harry extended the lease at the eleventh hour in January. Harry and the freeholder via the management company ultimately settled on a premium of £5,000 . If the lease had gone lower than eighty years, the price would have increased by at least £950.
Last Christmas we were phoned by Mr and Mrs. N Harris , who completed a basement apartment in Machynlleth in August 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Machynlleth with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease termination date was on 6 July 2101. Having 76 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Autumn we were called by Dr Charlie Turner , who purchased a one bedroom apartment in Machynlleth in February 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Machynlleth with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 billed annually. The lease terminated on 16 October 2081. Having 56 years unexpired we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus expenses.