The value of Bangor leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Bangor,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bangor valuers.
Jack owned a 2 bedroom apartment in Bangor on the market with a lease of fraction over 59 years unexpired. Jack informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Summer we were called by Ms F Roberts , who purchased a one bedroom flat in Bangor in February 1997. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Bangor with a long lease were worth £275,000. The average amount of ground rent was £55 billed quarterly. The lease ended on 8 April 2102. Considering the 76 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
In 2010 we were e-mailed by Mr Logan Collins who, having purchased a purpose-built apartment in Bangor in April 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical premises in Bangor with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2082. Taking into account 56 years left we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.