Glan Conwy residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property 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. |
| 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. |
| 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 |
Engaging our service will provide you increased control over the value of your Glan Conwy leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Glan Conwy, Lucy commenced the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in January 2005. The landlord’s costs were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. J Bonnet who, having purchased a ground floor apartment in Glan Conwy in July 1997. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Glan Conwy with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected annually. The lease terminated on 20 May 2077. Given that there were 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.
In 2009 we were contacted by Mr Dexter Wilson who, having completed a ground floor flat in Glan Conwy in September 1996. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative flats in Glan Conwy with a long lease were worth £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated in 2088. Taking into account 62 years remaining we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including expenses.