Lisvane leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Lisvane enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lisvane you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Lisvane leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises 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. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Lisvane 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.
Theo was the the leasehold proprietor of a 2 bedroom apartment in Lisvane on the market with a lease of just over fifty eight years remaining. Theo on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were approached by Mr P Murphy who, having completed a first floor apartment in Lisvane in May 2002. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative residencies in Lisvane with a long lease were valued around £275,000. The average ground rent payable was £45 billed per annum. The lease finished in 2093. Considering the 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
In 2014 we were e-mailed by Mr and Mrs. E Kelly who, having was assigned a lease of a ground floor flat in Lisvane in May 2002. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical homes in Lisvane with a long lease were in the region of £216,000. The average amount of ground rent was £60 collected quarterly. The lease ended on 6 March 2082. Having 58 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.