The nearer a domestic lease in Reynoldston gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Reynoldston will meet the qualifying criteria; however a conveyancer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Reynoldston with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Reynoldston can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience dealing with Reynoldston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Aarav, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Reynoldston. Having bought his flat two decades ago, the unexpired term was of no relevance. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Aarav extended the lease just under the wire last January. Aarav and the freeholder subsequently settled on a premium of £6,000 . If the lease had slipped to less than eighty years, the figure would have escalated by at least £875.
Mr and Mrs. I Martin acquired a garden apartment in Reynoldston in February 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable properties in Reynoldston with a long lease were valued around £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2099. Considering the 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
In 2010 we were approached by Dr Dylan Collins who, having owned a garden apartment in Reynoldston in August 2009. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Reynoldston with a long lease were worth £240,600. The average ground rent payable was £60 invoiced quarterly. The lease finished in 2088. Considering the 62 years outstanding we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including costs.