With a long leasehold property in Reynoldston, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Anyone in Reynoldston with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once a lease has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Reynoldston can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 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.
In recent months Freddie, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Reynoldston. In buying his property two decades ago, the lease term was of no importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Freddie extended the lease just ahead of time in April. Freddie and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had fallen to less than eighty years, the premium would have gone up by a minimum £1,000.
In 2009 we were called by Mr Elijah Hall who, having moved into a purpose-built apartment in Reynoldston in April 2000. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Reynoldston with a long lease were in the region of £243,000. The average ground rent payable was £65 invoiced monthly. The lease lapsed on 16 January 2088. Considering the 63 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including fees.
In 2013 we were phoned by Dr Sophie Patel who, having bought a basement apartment in Reynoldston in August 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Reynoldston with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2077. Having 52 years remaining we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.