Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Monmouth. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Monmouth have the legal entitlement to extend the lease for an additional 90 years under statute. Do give due consideration before delaying your Monmouth lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Monmouth with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
Lease extensions in Monmouth can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 Monmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in Monmouth, Eleanor started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension was concluded in November 2006. The freeholder’s costs were kept to an absolute minimum.
Dr C Sánchez bought a garden apartment in Monmouth in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Monmouth with 100 year plus lease were valued about £176,200. The average amount of ground rent was £65 billed every twelve months. The lease termination date was on 28 February 2081. Having 56 years unexpired we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of costs.
Last Autumn we were approach by Mr and Mrs. V Young , who purchased a studio flat in Monmouth in February 2010. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar properties in Monmouth with a long lease were worth £242,600. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded on 25 February 2092. Considering the 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including expenses.