The closer a domestic lease in Maesteg nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years remaining 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 sooner as opposed to later. Most flat owners in Maesteg will meet the qualifying criteria; nevertheless a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Maesteg 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 conveyancing solicitor we work with provide it.
Reuben was the the leasehold proprietor of a high value flat in Maesteg on the market with a lease of a few days over sixty years outstanding. Reuben on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Ms E Morel was assigned a lease of a basement apartment in Maesteg in April 2000. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Maesteg with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded in 2103. Having 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Last Winter we were e-mailed by Mr Connor Lambert , who purchased a studio flat in Maesteg in October 2012. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical residencies in Maesteg with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 billed annually. The lease came to a finish in 2092. Considering the 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus costs.