Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Reynoldston. Clearly, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Reynoldston have the right to extend the lease for an additional 90 years under legislation. You should give due deliberation before putting off your Reynoldston lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Reynoldston with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you enhanced control over the value of your Reynoldston leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Eliot, came perilously close to the eighty-year mark with the lease on his basement apartment in Reynoldston. In buying his home two decades ago, the lease term was of little interest. Luckily, he noticed he needed to take steps soon on a lease extension. Eliot was able to extend his lease just under the wire in May. Eliot and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £900.
Ms Elizabeth Lee completed a first floor apartment in Reynoldston in November 2000. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar residencies in Reynoldston with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 collected annually. The lease expired in 2100. Having 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Ms M Scott moved into a ground floor flat in Reynoldston in April 2001. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Reynoldston with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease expiry date was on 13 January 2089. Given that there were 64 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus professional charges.