Glan Conwy leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Glan Conwy will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Glan Conwy with more than 100 years unexpired 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Glan Conwy can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 dealing with Glan Conwy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen was the the leasehold owner of a 2 bedroom apartment in Glan Conwy being marketed with a lease of just over 61 years unexpired. Owen on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2013 we were approached by Dr Tia Ali who, having moved into a purpose-built apartment in Glan Conwy in February 2006. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative flats in Glan Conwy with an extended lease were in the region of £225,400. The average ground rent payable was £45 billed per annum. The lease elapsed in 2089. Given that there were 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 not including expenses.
Last April we were approach by Mrs U Mitchell , who took over the lease of a one bedroom flat in Glan Conwy in April 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Glan Conwy with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease lapsed on 12 January 2100. Taking into account 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.