The value of Glan Conwy leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
Leasehold premises in Glan Conwy with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Glan Conwy can be a difficult process. We recommend you secure guidance from a conveyancer 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 in-depth market knowledge 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.
Matthew owned a studio flat in Glan Conwy being sold with a lease of a few days over 72 years outstanding. Matthew informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last month we were e-mailed by Mr and Mrs. V Lefebvre , who moved into a studio apartment in Glan Conwy in July 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Glan Conwy with an extended lease were in the region of £242,600. The average amount of ground rent was £45 billed annually. The lease expired on 3 August 2093. Considering the 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including legals.
In 2009 we were approached by Ms V Taylor who, having owned a purpose-built flat in Glan Conwy in January 1999. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Glan Conwy with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished on 1 October 2104. Having 78 years remaining we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.