There is no doubt about it a leasehold flat or house in Barmouth is a wasting asset as a result of the shortening lease. Where the lease has, more than 125 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Barmouth will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Barmouth with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Barmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her ground floor flat in Barmouth, Chantelle commenced the lease extension process just as the lease was approaching the critical eighty-year mark. The legal work completed in February 2005. The landlord’s charges were kept to an absolute minimum.
Last June we were approach by Mr and Mrs. F Kelly , who moved into a ground floor flat in Barmouth in July 1998. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable properties in Barmouth with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 billed monthly. The lease termination date was on 14 January 2085. Considering the 60 years outstanding we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.
Mr and Mrs. K Williams completed a garden flat in Barmouth in May 1998. The question was if we could estimate the price could be for a ninety year lease extension. Comparative properties in Barmouth with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2096. Taking into account 71 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.