Resolven leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Resolven residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Resolven you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Resolven can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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 Resolven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Ali, came dangerously near to the eighty-year mark with the lease on his ground floor apartment in Resolven. Having bought his flat 18 years previously, the lease term was of minimal importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Ali arranged for a lease extension just ahead of time in September. Ali and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he failed to meet the deadline, the amount would have increased by at least £900.
Last Spring we were e-mailed by Ms H Watson , who completed a garden flat in Resolven in January 1995. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in Resolven with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 billed yearly. The lease came to a finish in 2087. Having 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
Mr and Mrs. E Edwards moved into a basement flat in Resolven in March 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative flats in Resolven with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish on 27 May 2098. Taking into account 72 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.