On the balance of probabilities where you own a flat in Usk you actually own a long leasehold interest over your property
Leasehold properties in Usk with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Usk can be a difficult process. We recommend you obtain professional help from a lawyer 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 a wealth of experience dealing with Usk lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oliver owned a 2 bedroom flat in Usk on the market with a lease of a few days over 72 years left. Oliver on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. C Garcia , who owned a one bedroom flat in Usk in May 1997. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar properties in Usk with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished in 2103. Taking into account 78 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
Mr and Mrs. W Garcia owned a first floor flat in Usk in April 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Usk with an extended lease were in the region of £191,000. The mid-range amount of ground rent was £65 billed annually. The lease expired in 2083. Given that there were 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus expenses.