Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Beddgelert. Clearly, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Beddgelert have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Please give careful consideration before delaying your Beddgelert lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Beddgelert can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Beddgelert lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Leon, came precariously close to the eighty-year threshold with the lease on his leasehold apartment in Beddgelert. In buying his property two decades ago, the unexpired term was of little importance. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Leon was able to extend his lease just under the wire last July. Leon and the landlord in the end settled on a premium of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £950.
Ms E Lewis owned a ground floor apartment in Beddgelert in March 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Beddgelert with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 billed per annum. The lease finished in 2099. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2011 we were phoned by Mr V Watson who, having owned a studio flat in Beddgelert in February 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Beddgelert with a long lease were worth £240,600. The average ground rent payable was £65 collected every twelve months. The lease concluded on 10 August 2088. Taking into account 62 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.