There is no doubt about it a leasehold property in Bethesda is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Bethesda will meet the qualifying criteria; that being said a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Bethesda with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Bethesda can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Henry owned a conversion apartment in Bethesda on the market with a lease of just over 61 years unexpired. Henry informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last year we were called by Mr and Mrs. K Bonnet , who took over the lease of a purpose-built apartment in Bethesda in September 2005. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Similar properties in Bethesda with an extended lease were in the region of £260,000. The average ground rent payable was £50 collected yearly. The lease ran out on 5 July 2099. Considering the 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Mr and Mrs. F Vincent moved into a basement flat in Bethesda in August 2004. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Bethesda with a long lease were valued about £264,000. The average amount of ground rent was £60 billed yearly. The lease finished on 7 July 2079. Taking into account 53 years left we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including expenses.