Unfortunately that a Maesteg residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Maesteg property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Maesteg will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Maesteg,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Maesteg valuers.
Gabriel owned a high value apartment in Maesteg on the market with a lease of fraction over 61 years left. Gabriel informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were e-mailed by Ms Kirsty Simon who, having moved into a purpose-built apartment in Maesteg in April 2004. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative flats in Maesteg with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £55 invoiced per annum. The lease termination date was in 2082. Taking into account 56 years remaining we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Mr and Mrs. S Nelson completed a basement apartment in Maesteg in November 2011. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical homes in Maesteg with a long lease were valued around £300,000. The average ground rent payable was £50 collected quarterly. The lease came to a finish in 2102. Considering the 76 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.