Rhymney leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rhymney residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rhymney you must see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Rhymney leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Rhymney,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rhymney valuers.
Jason owned a high value flat in Rhymney being marketed with a lease of just over 59 years remaining. Jason informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Dr I Murphy purchased a one bedroom apartment in Rhymney in October 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Rhymney with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 collected per annum. The lease concluded on 24 May 2089. Taking into account 63 years left we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
Dr Jennifer Fournier took over the lease of a one bedroom apartment in Rhymney in May 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Rhymney with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out on 6 October 2078. Having 52 years outstanding we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.