With a residential leasehold property in Bethesda, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years remaining. Anyone in Bethesda with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has below 80 years remaining, under the relevant statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Bethesda with over 100 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bethesda,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bethesda valuers.
In recent months Archie, came seriously near to the 80-year mark with the lease on his studio apartment in Bethesda. In buying his home twenty years previously, the unexpired term was of minimal importance. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Archie arranged for a lease extension at the eleventh hour in May. Archie and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the premium would have escalated by at least £1,150.
Last Summer we were approach by Dr Dexter Vincent , who moved into a recently refurbished flat in Bethesda in August 1997. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar properties in Bethesda with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded on 14 March 2103. Considering the 78 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Spring we were approach by Mr Alfie Ramírez , who was assigned a lease of a recently refurbished apartment in Bethesda in September 1997. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Bethesda with 100 year plus lease were worth £186,000. The average ground rent payable was £65 invoiced yearly. The lease finished on 19 November 2083. Considering the 58 years remaining we estimated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including expenses.