The closer a residential lease in Resolven gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Resolven will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Resolven with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Resolven,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Resolven valuers.
Milo owned a studio flat in Resolven being sold with a lease of a little over 61 years outstanding. Milo informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. P Wright moved into a one bedroom flat in Resolven in February 2007. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical homes in Resolven with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced monthly. The lease finished in 2106. Taking into account 80 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Mr R Martinez completed a one bedroom apartment in Resolven in July 1997. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable properties in Resolven with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 26 October 2086. Having 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus costs.