The market value of a leasehold property in Risca depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation entitles Risca qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Risca,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Risca valuers.
Following protracted negotiations with the freeholder of her first floor apartment in Risca, Kelsey commenced the lease extension process just as the lease was nearing the critical eighty-year deadline. The lease extension was concluded in November 2012. The landlord’s charges were restricted to approximately 450 pounds.
Ms S Flores was assigned a lease of a newly refurbished flat in Risca in January 2003. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Risca with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 11 March 2093. Given that there were 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. T Ramírez completed a one bedroom flat in Risca in March 2006. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Risca with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed in 2104. Considering the 79 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.