Unfortunately that a Magor residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Magor property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Magor will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Magor can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Magor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam was the the leasehold owner of a studio flat in Magor being sold with a lease of a little over 59 years left. Sam informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Spring we were phoned by Dr Tia Thompson , who was assigned a lease of a purpose-built apartment in Magor in September 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Magor with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease termination date was on 12 July 2104. Considering the 79 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Dr K Thomas moved into a basement flat in Magor in May 2003. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Magor with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2084. Having 59 years remaining we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.