The market value of a leasehold property in Maesteg depends on how long the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year mark. Leasehold Reform legislation enables Maesteg qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Maesteg,the lease extension experts that we work with will always be prepared 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.
Following protracted negotiations with the freeholder of her basement apartment in Maesteg, Chloe commenced the lease extension process as the eighty year threshold was fast coming. The transaction completed in November 2014. The freeholder’s fees were negotiated to less than 700 GBP.
Mr and Mrs. H Turner took over the lease of a newly refurbished apartment in Maesteg in May 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar homes in Maesteg with 100 year plus lease were valued about £243,000. The average amount of ground rent was £65 billed per annum. The lease expiry date was on 5 July 2088. Given that there were 63 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.
Last month we were phoned by Mr R Collins , who bought a ground floor apartment in Maesteg in September 1997. The question was if we could estimate the premium could be to prolong the lease by ninety years. Identical residencies in Maesteg with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 28 May 2077. Considering the 52 years remaining we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.