For those whose Maesteg home is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Maesteg with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Maesteg leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Charlie, started to get near to the eighty-year mark with the lease on his garden apartment in Maesteg. Having purchased his home two decades ago, the unexpired term was of no bearing. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Charlie arranged for a lease extension just under the wire in July. Charlie and the landlord ultimately settled on a premium of £6,000 . If the lease had gone lower than 80 years, the sum would have gone up by at least £950.
Dr Isabelle Phillips took over the lease of a ground floor apartment in Maesteg in April 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Maesteg with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed on 24 February 2080. Taking into account 54 years left we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including professional charges.
Last month we were e-mailed by Ms Hannah García , who moved into a first floor flat in Maesteg in October 2001. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Identical premises in Maesteg with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced every twelve months. The lease ran out in 2100. Taking into account 74 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.