Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Glan Conwy. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Glan Conwy have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. You should give careful deliberation before delaying your Glan Conwy lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Glan Conwy can be a difficult process. We recommend you get professional help from a conveyancer 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 a wealth of experience procuring 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.
Subsequent to unsuccessful negotiations with the landlord of her two bedroom apartment in Glan Conwy, Yasmin started the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was concluded in March 2005. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. P Taylor owned a purpose-built flat in Glan Conwy in May 2007. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative flats in Glan Conwy with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed in 2087. Given that there were 61 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
In 2012 we were approached by Dr William Moreau who, having acquired a one bedroom flat in Glan Conwy in April 1999. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Glan Conwy with a long lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease ran out in 2098. Having 72 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.