Monmouth leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Monmouth will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Monmouth with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 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 in-depth market knowledge 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.
Half a year ago Aiden, started to get close to the eighty-year mark with the lease on his basement apartment in Monmouth. Having purchased his home two decades ago, the lease term was of minimal importance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Aiden extended the lease just under the wire in January. Aiden and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had descended below 80 years, the price would have become more exhorbitant by a minimum £1,025.
Mr B Sánchez acquired a studio flat in Monmouth in September 2009. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar homes in Monmouth with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 collected quarterly. The lease terminated on 14 May 2089. Having 63 years left we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of legals.
In 2012 we were e-mailed by Mr M Rogers who, having owned a first floor flat in Monmouth in September 1996. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative homes in Monmouth with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease came to a finish on 28 June 2100. Considering the 74 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.