There is no doubt about it a leasehold property in Rhymney is a wasting asset as a result of the shortening lease. If the lease has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Rhymney will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rhymney can be a difficult process. We recommend you secure guidance from a conveyancer 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 in-depth market knowledge 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.
Leo was the the leasehold proprietor of a conversion apartment in Rhymney on the market with a lease of fraction over 61 years left. Leo on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. J Harris who, having bought a newly refurbished apartment in Rhymney in April 2000. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparative premises in Rhymney with an extended lease were worth £184,000. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed in 2078. Taking into account 53 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.
Last July we were phoned by Mr Edward Roberts , who bought a one bedroom apartment in Rhymney in November 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Rhymney with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2098. Considering the 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.