Beddgelert 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 the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Beddgelert residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Beddgelert you would be well advised to check if your lease has between 70 and ninety years remaining. There are good reasons why a Beddgelert leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Beddgelert with in excess of 100 years outstanding 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Beddgelert 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 conveyancer we work with provide it.
Matthew owned a 2 bedroom flat in Beddgelert on the market with a lease of a little over 59 years outstanding. Matthew informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were called by Mr M Martin who, having moved into a purpose-built apartment in Beddgelert in June 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Beddgelert with an extended lease were valued around £275,000. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2093. Considering the 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2013 we were called by Ms Maisie Bennett who, having was assigned a lease of a garden apartment in Beddgelert in May 2004. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Beddgelert with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease expired on 16 September 2082. Having 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.