The nearer a domestic lease in Mid Wales nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Mid Wales will qualify for this right; however a lawyer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Mid Wales with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Mid Wales,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mid Wales valuers.
Last year Tommy, came seriously near to the 80-year mark with the lease on his basement flat in Mid Wales. Having purchased his home twenty years ago, the lease term was of little relevance. by good luck, he realised he needed to take action soon on Extending the lease. Tommy was able to extend his lease just under the wire in April. Tommy and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by at least £850.
Dr W Torres purchased a ground floor flat in Mid Wales in July 2003. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Mid Wales with an extended lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease lapsed in 2098. Given that there were 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last Winter we were contacted by Mr and Mrs. C Adams , who moved into a basement flat in Mid Wales in May 1998. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical residencies in Mid Wales with a long lease were in the region of £240,600. The average amount of ground rent was £60 collected yearly. The lease concluded in 2087. Having 62 years remaining we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus legals.