Unfortunately that a Bethesda residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bethesda property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Bethesda will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Bethesda with more than one hundred years unexpired 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society | |
| TSB |
Lease extensions in Bethesda can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 in-depth market knowledge procuring Bethesda lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Alexander, started to get near to the eighty-year threshold with the lease on his leasehold flat in Bethesda. Having bought his flat twenty years ago, the unexpired term was of little concern. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Alexander was able to extend his lease just in the nick of time in May. Alexander and the landlord subsequently agreed on a premium of £5,000 . If the lease had gone to less than 80 years, the premium would have gone up by a minimum £1,075.
Last Spring we were approach by Mr and Mrs. U Norbert , who acquired a basement apartment in Bethesda in April 2008. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical premises in Bethesda with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 billed yearly. The lease lapsed in 2106. Taking into account 80 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2013 we were phoned by Mr U Kelly who, having moved into a studio flat in Bethesda in May 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Bethesda with an extended lease were in the region of £200,800. The average ground rent payable was £65 collected yearly. The lease ran out in 2086. Given that there were 60 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.