As the the remaining lease term of a Betws Y Coed domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Betws Y Coed will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Betws Y Coed,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 Betws Y Coed valuers.
Twenty four months ago Blake, started to get near to the eighty-year mark with the lease on his garden flat in Betws Y Coed. In buying his flat 18 years ago, the lease term was of no importance. Luckily, he recognised he would soon be paying way over the odds for a lease extension. Blake was able to extend his lease at the eleventh hour last June. Blake and the landlord eventually agreed on an amount of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £875.
Dr Andrew Lee acquired a studio apartment in Betws Y Coed in June 1997. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Betws Y Coed with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed on 14 November 2091. Taking into account 66 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Mr Austin Torres acquired a garden flat in Betws Y Coed in February 2003. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative homes in Betws Y Coed with a long lease were worth £280,000. The average amount of ground rent was £55 billed monthly. The lease ran out in 2102. Considering the 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.