Monmouth leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Monmouth will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, 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. |
| 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. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the landlord of her leasehold flat in Monmouth, Freya started the lease extension process as the 80 year threshold was rapidly advancing. The transaction completed in April 2005. The landlord’s charges were kept to an absolute minimum.
Ms K David acquired a first floor flat in Monmouth in January 2011. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical flats in Monmouth with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed in 2096. Considering the 70 years outstanding we calculated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of expenses.
In 2014 we were phoned by Ms P Peterson who, having took over the lease of a basement flat in Monmouth in November 2000. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Monmouth with a long lease were in the region of £246,800. The average ground rent payable was £60 invoiced yearly. The lease elapsed in 2076. Taking into account 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of costs.