As the length of the unexpired term of a Nantyglo residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years to run then this decrease may be fractional however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Nantyglo will qualify for this right; however a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 undertake Nantyglo 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.
Last Spring Aarav, started to get close to the 80-year threshold with the lease on his studio apartment in Nantyglo. In buying his flat 19 years previously, the unexpired term was of minimal bearing. Luckily, he realised he needed to take action soon on a lease extension. Aarav was able to extend his lease just ahead of time last August. Aarav and the freeholder via the management company ultimately settled on a premium of £6,000 . If the lease had dipped lower than 80 years, the sum would have increased by at least £900.
Last month we were e-mailed by Mrs Lauren Rivera , who took over the lease of a first floor apartment in Nantyglo in May 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Nantyglo with an extended lease were worth £257,800. The average amount of ground rent was £65 billed per annum. The lease terminated on 13 March 2090. Taking into account 65 years unexpired we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.
Last Summer we were called by Mr William Patel , who took over the lease of a garden apartment in Nantyglo in April 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical homes in Nantyglo with 100 year plus lease were in the region of £196,400. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated in 2079. Taking into account 54 years left we calculated the premium to the freeholder for the lease extension to be within £35,200 and £40,600 plus fees.