With a domestic leasehold premises in Resolven, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Resolven with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years remaining, under the current legislation the landlord can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 procure Resolven 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 lawyer we work with provide it.
Omar owned a 2 bedroom apartment in Resolven on the market with a lease of a little over 61 years remaining. Omar on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Ms F Wilson owned a basement apartment in Resolven in February 2002. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar flats in Resolven with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended in 2098. Taking into account 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last Winter we were called by Mr and Mrs. V Wright , who acquired a ground floor apartment in Resolven in August 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Resolven with a long lease were valued around £264,000. The average ground rent payable was £60 collected quarterly. The lease concluded on 13 June 2078. Having 53 years left we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus costs.