As the length of the unexpired term of a Maesteg residential lease diminished so does its value and therefore the value of your property. Where the lease has, over 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Maesteg will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Maesteg,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maesteg valuers.
Trailing unsuccessful discussions with the freeholder of her basement flat in Maesteg, Grace commenced the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in November 2007. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Mrs Rachael López who, having was assigned a lease of a first floor flat in Maesteg in May 2000. We are asked if we could estimate the price would be for a 90 year lease extension. Identical premises in Maesteg with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease came to a finish in 2106. Considering the 80 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2011 we were called by Dr Jayden López who, having owned a studio flat in Maesteg in February 2007. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Maesteg with an extended lease were in the region of £275,000. The average ground rent payable was £45 invoiced yearly. The lease finished in 2095. Having 69 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.