It’s an underpublicised certainty that a Glan Conwy residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Glan Conwy property market.Where your lease has approximately ninety 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 slips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Glan Conwy will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 procure guidance from a conveyancer and valuer 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.
Jackson owned a studio flat in Glan Conwy on the market with a lease of just over sixty years remaining. Jackson informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and secured satisfactory resolution informally and sell the property.
Last month we were approach by Mr Felix Watson , who purchased a one bedroom apartment in Glan Conwy in October 2004. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Glan Conwy with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed in 2094. Having 69 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Spring we were phoned by Dr T Bennett , who took over the lease of a purpose-built apartment in Glan Conwy in August 2012. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar premises in Glan Conwy with a long lease were valued about £290,000. The mid-range ground rent payable was £55 collected monthly. The lease expiry date was in 2105. Having 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.