With a long leasehold premises in St Athan, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years left. Residents in St Athan with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has less than eighty years left, under the current statute the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| 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. |
The lawyers that we work with handle St Athan 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 conveyancer we work with provide it.
Jack owned a conversion apartment in St Athan being sold with a lease of a few days over fifty eight years outstanding. Jack informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mrs Rosie Martinez took over the lease of a studio apartment in St Athan in November 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative homes in St Athan with an extended lease were valued around £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease end date was on 12 March 2082. Taking into account 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.
Mr Mason Khan acquired a one bedroom flat in St Athan in April 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical properties in St Athan with a long lease were worth £245,000. The average ground rent payable was £45 invoiced per annum. The lease expired in 2093. Considering the 68 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.