Bangor leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Bangor will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Bangor with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | 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. |
| 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 conveyancing solicitors that we work with procure Bangor 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 conveyancing solicitor we work with provide it.
Subsequent to lengthy correspondence with the freeholder of her two bedroom apartment in Bangor, Amy initiated the lease extension process as the 80 year deadline was quickly advancing. The transaction was concluded in August 2012. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. G François , who moved into a studio apartment in Bangor in November 2002. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Bangor with 100 year plus lease were in the region of £173,800. The average amount of ground rent was £60 invoiced yearly. The lease concluded in 2080. Taking into account 55 years remaining we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.
Mr T Roux was assigned a lease of a first floor flat in Bangor in March 2004. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in Bangor with an extended lease were valued about £235,200. The average ground rent payable was £45 invoiced monthly. The lease ran out in 2091. Given that there were 66 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.