When it comes to residential leasehold property in Barmouth, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years left. Leasehold owners in Barmouth with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has less than 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Barmouth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Barmouth 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.
In recent months Rory, came dangerously near to the eighty-year threshold with the lease on his studio apartment in Barmouth. Having bought his home two decades ago, the unexpired term was of little relevance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Rory arranged for a lease extension just under the wire last January. Rory and the landlord eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,100.
In 2010 we were e-mailed by Mrs Jodie Khan who, having moved into a studio apartment in Barmouth in August 1998. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparable properties in Barmouth with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ran out on 11 March 2096. Having 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 plus costs.
Last April we were called by Mr and Mrs. E Phillips , who took over the lease of a basement flat in Barmouth in July 2001. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable flats in Barmouth with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed on 11 July 2076. Given that there were 50 years left we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of legals.