As the the remaining lease term of a Risca domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Risca will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Risca with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Risca 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.
Trailing lengthy discussions with the freeholder of her purpose-built flat in Risca, Amy started the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction was finalised in August 2012. The landlord’s charges were restricted to less than 500 GBP.
Mr Nathan François purchased a basement flat in Risca in January 1996. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable flats in Risca with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 collected yearly. The lease terminated on 22 August 2077. Having 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.
In 2013 we were contacted by Mr and Mrs. L Moore who, having owned a basement apartment in Risca in August 1997. The question was if we could estimate the price could be for a ninety year lease extension. Identical premises in Risca with a long lease were in the region of £210,600. The average ground rent payable was £45 billed monthly. The lease termination date was in 2088. Given that there were 62 years outstanding we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.