The re-sale value of a leasehold property in Bethesda depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year cut off point. Current legislation entitles Bethesda qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Bethesda can be a difficult process. We recommend you get professional help from a lawyer 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.
After protracted negotiations with the freeholder of her ground floor apartment in Bethesda, Sian initiated the lease extension process just as her lease was nearing the critical 80-year mark. The transaction completed in February 2008. The freeholder’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr Zachary Laurent , who owned a purpose-built flat in Bethesda in July 2005. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Bethesda with a long lease were valued about £255,000. The mid-range ground rent payable was £50 collected annually. The lease termination date was in 2096. Having 71 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Dr P Edwards acquired a garden flat in Bethesda in March 2011. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable homes in Bethesda with a long lease were in the region of £254,200. The average ground rent payable was £60 invoiced quarterly. The lease concluded in 2076. Having 51 years as a residual term we estimated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus professional charges.