The re-sale value of a leasehold property in St Athan depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised prior to the eighty year cut off point. Current legislation entitles St Athan qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in St Athan with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in St Athan can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 in-depth market knowledge procuring St Athan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Ben, started to get close to the 80-year mark with the lease on his garden apartment in St Athan. In buying his property two decades ago, the unexpired term was of no importance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Ben extended the lease just in the nick of time last January. Ben and the freeholder in the end settled on the final figure of £6,000 . If the lease had fallen below eighty years, the premium would have gone up by a minimum £950.
Last Winter we were approach by Dr Kayleigh Nelson , who moved into a ground floor apartment in St Athan in July 2011. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative flats in St Athan with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease expiry date was in 2097. Taking into account 71 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Spring we were approach by Mr and Mrs. I Edwards , who moved into a garden flat in St Athan in September 2000. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical properties in St Athan with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 invoiced annually. The lease termination date was on 17 September 2077. Considering the 51 years outstanding we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.