The market value of a leasehold property in Mid Wales depends on how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised well before the 80 year cut off point. Current legislation enables Mid Wales qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mid Wales can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Mid Wales lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 William, started to get near to the eighty-year threshold with the lease on his ground floor flat in Mid Wales. In buying his property twenty years previously, the unexpired term was of minimal relevance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. William arranged for a lease extension just under the wire in July. William and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £900.
In 2014 we were contacted by Ms D Gray who, having acquired a first floor flat in Mid Wales in October 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Mid Wales with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease lapsed in 2094. Given that there were 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.
In 2011 we were e-mailed by Dr Rhiannon Murphy who, having purchased a first floor apartment in Mid Wales in October 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical premises in Mid Wales with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 24 March 2083. Considering the 57 years remaining we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.