Usk leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Usk enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Usk you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 conveyancers that we work with handle Usk 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 conveyancing solicitor we work with provide it.
During the course of the last few months Joseph, came dangerously near to the 80-year mark with the lease on his basement apartment in Usk. Having purchased his flat 19 years previously, the length of the lease was of no relevance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Joseph arranged for a lease extension at the eleventh hour in June. Joseph and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,100.
In 2013 we were called by Mrs Leah Cooper who, having completed a one bedroom apartment in Usk in July 2007. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical homes in Usk with a long lease were worth £208,200. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2087. Having 61 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including fees.
Dr N Green acquired a first floor apartment in Usk in May 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Usk with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated on 19 March 2098. Given that there were 72 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.