Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Maesteg. Inevitably, the period of lease left shortens over time. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Maesteg have the right to extend the lease for a further 90 years in accordance with statute. You should give due attention before putting off your Maesteg lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Maesteg leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Logan, came precariously near to the 80-year mark with the lease on his leasehold flat in Maesteg. In buying his property two decades ago, the lease term was of little relevance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Logan extended the lease just under the wire last March. Logan and the landlord subsequently settled on sum of £6,000 . If the lease had slid lower than eighty years, the premium would have gone up by a minimum £1,075.
Last Christmas we were contacted by Mr and Mrs. Y Wood , who acquired a purpose-built apartment in Maesteg in November 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Maesteg with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease ended on 6 September 2091. Given that there were 66 years left we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.
In 2011 we were approached by Dr P Cox who, having took over the lease of a garden apartment in Maesteg in February 1996. The question was if we could approximate the premium would be to extend the lease by ninety years. Comparable residencies in Maesteg with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2080. Taking into account 55 years unexpired we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.