When it comes to domestic leasehold property in Rhayader, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Rhayader with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years outstanding, under the current Act the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Rhayader with in excess of one hundred 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Rhayader lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Cameron, started to get close to the 80-year mark with the lease on his studio apartment in Rhayader. In buying his flat 18 years previously, the length of the lease was of minimal bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Cameron arranged for a lease extension just ahead of time in July. Cameron and the landlord who owned the flat above in the end settled on sum of £5,500 . If he not met the deadline, the price would have gone up by at least £850.
Mr H Stewart moved into a garden apartment in Rhayader in May 2004. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical residencies in Rhayader with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 15 May 2102. Considering the 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
Last month we were e-mailed by Dr J Flores , who bought a one bedroom flat in Rhayader in January 2003. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Rhayader with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended in 2091. Taking into account 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of legals.