When it comes to long leasehold property in Monmouth, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in Monmouth with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has less than eighty years remaining, under the current Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Monmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy negotiations with the landlord of her two bedroom apartment in Monmouth, Holly initiated the lease extension process as the eighty year deadline was rapidly approaching. The legal work completed in October 2010. The landlord’s costs were restricted to slightly above 550 pounds.
In 2009 we were called by Mr and Mrs. C Smith who, having owned a recently refurbished flat in Monmouth in March 2000. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar premises in Monmouth with an extended lease were valued around £290,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 20 March 2105. Given that there were 80 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last Spring we were approach by Mr and Mrs. R Ali , who bought a one bedroom apartment in Monmouth in September 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Monmouth with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease ended in 2085. Having 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus fees.