With a domestic leasehold property in Magor, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Magor with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has under eighty years left, under the current statute the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Using our service gives you increased control over the value of your Magor leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Joshua, came perilously near to the 80-year mark with the lease on his ground floor apartment in Magor. Having bought his property 19 years previously, the unexpired term was of little bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Joshua arranged for a lease extension just under the wire last May. Joshua and the freeholder subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £1,050.
In 2013 we were contacted by Ms D Jackson who, having moved into a first floor flat in Magor in July 2012. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar homes in Magor with an extended lease were in the region of £210,600. The average amount of ground rent was £45 billed monthly. The lease lapsed in 2088. Taking into account 62 years outstanding we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.
Dr L Bailey completed a one bedroom apartment in Magor in February 2011. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative flats in Magor with a long lease were valued about £265,000. The mid-range ground rent payable was £50 collected monthly. The lease ended on 11 February 2099. Having 73 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.