The value of Nantyglo leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 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 |
|---|---|
| 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; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Nantyglo can be a difficult process. We recommend you obtain professional help 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 procuring Nantyglo lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Arthur, started to get close to the 80-year mark with the lease on his first floor flat in Nantyglo. Having purchased his flat twenty years ago, the unexpired term was of minimal concern. As luck would have it, he recognised he needed to take steps soon on a lease extension. Arthur was able to extend his lease at the eleventh hour last August. Arthur and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £1,000.
Last Autumn we were called by Mr and Mrs. K Clark , who purchased a studio flat in Nantyglo in April 2007. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Similar residencies in Nantyglo with an extended lease were valued about £280,000. The average amount of ground rent was £45 invoiced per annum. The lease concluded on 14 May 2096. Given that there were 70 years unexpired we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
In 2013 we were called by Mrs K Gray who, having completed a one bedroom apartment in Nantyglo in March 1999. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparable residencies in Nantyglo with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 collected quarterly. The lease ended in 2085. Considering the 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including expenses.