Beddgelert residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold premises in Beddgelert with over one hundred years outstanding on the lease are often referred to as ‘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 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Beddgelert can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
George owned a high value flat in Beddgelert being sold with a lease of a little over fifty eight years left. George on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were George to invoke his statutory right. George procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were called by Dr H David who, having owned a ground floor apartment in Beddgelert in August 2007. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparative residencies in Beddgelert with an extended lease were in the region of £210,000. The average ground rent payable was £50 collected per annum. The lease finished in 2105. Having 80 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Mr and Mrs. E Lefebvre purchased a garden flat in Beddgelert in September 2002. The question was if we could estimate the premium could be to prolong the lease by ninety years. Identical properties in Beddgelert with an extended lease were in the region of £280,000. The average ground rent payable was £45 billed every twelve months. The lease termination date was on 5 April 2094. Given that there were 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.