It’s a harsh truth that a Beddgelert residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Beddgelert property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Beddgelert will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 guidance 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 a wealth of experience procuring Beddgelert lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Luke, came precariously near to the 80-year mark with the lease on his basement flat in Beddgelert. In buying his home two decades ago, the unexpired term was of no relevance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Luke extended the lease just under the wire in July. Luke and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,100.
In 2011 we were e-mailed by Mr Oscar Bennett who, having was assigned a lease of a one bedroom apartment in Beddgelert in September 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar flats in Beddgelert with a long lease were worth £216,000. The average amount of ground rent was £60 billed yearly. The lease terminated in 2084. Taking into account 58 years outstanding we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Last June we were called by Mr V Miller , who owned a first floor apartment in Beddgelert in September 2001. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar flats in Beddgelert with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish on 4 October 2104. Considering the 78 years left we calculated the premium to the landlord for the lease extension to be between £7,600 and £8,800 not including costs.