The market value of a leasehold property in Glan Conwy depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year cut off point. Statute enables Glan Conwy qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Glan Conwy with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Retaining our service gives you better control over the value of your Glan Conwy leasehold, as your property will be more valuable and marketable 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.
In 2014 Reuben, started to get near to the 80-year mark with the lease on his one bedroom flat in Glan Conwy. In buying his home twenty years previously, the length of the lease was of no concern. by good luck, he realised he would soon be paying way over the odds for a lease extension. Reuben arranged for a lease extension just under the wire last March. Reuben and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had fallen to less than 80 years, the premium would have increased by a minimum £1,050.
Mr and Mrs. O Rivera acquired a purpose-built apartment in Glan Conwy in March 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar premises in Glan Conwy with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 billed annually. The lease terminated in 2092. Given that there were 66 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
In 2012 we were approached by Dr Rhiannon Stewart who, having bought a basement flat in Glan Conwy in June 2011. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Glan Conwy with an extended lease were valued about £275,000. The average amount of ground rent was £55 invoiced yearly. The lease elapsed on 5 October 2103. Taking into account 77 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.