It’s a harsh truth that a Glan Conwy residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Glan Conwy property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Most leasehold owners in Glan Conwy will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancers that we work with undertake Glan Conwy lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Elijah, came dangerously near to the 80-year threshold with the lease on his garden flat in Glan Conwy. In buying his home two decades ago, the length of the lease was of minimal bearing. by good luck, he realised he needed to take steps soon on Extending the lease. Elijah arranged for a lease extension just in the nick of time last January. Elijah and the freeholder via the management company in the end settled on an amount of £5,500 . If he not met the deadline, the amount would have become more costly by a minimum £1,100.
In 2012 we were called by Dr Freddie Bernard who, having purchased a basement flat in Glan Conwy in January 2003. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative premises in Glan Conwy with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 billed annually. The lease expired in 2090. Given that there were 65 years left we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
In 2010 we were approached by Mr and Mrs. K Cooper who, having moved into a first floor apartment in Glan Conwy in April 2007. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative flats in Glan Conwy with an extended lease were worth £275,000. The average amount of ground rent was £55 invoiced annually. The lease lapsed in 2101. Taking into account 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.