It’s a harsh certainty that a Rhymney residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Rhymney property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Rhymney will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Rhymney with in excess of 100 years left on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
Lease extensions in Rhymney can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 a wealth of experience procuring Rhymney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her purpose-built flat in Rhymney, Aimee started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension was concluded in June 2006. The landlord’s charges were kept to an absolute minimum.
Ms Jade Martinez was assigned a lease of a one bedroom apartment in Rhymney in June 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Rhymney with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish in 2082. Given that there were 56 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
Dr M Garcia bought a purpose-built apartment in Rhymney in November 1995. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Rhymney with a long lease were valued about £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2102. Taking into account 76 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.