Unfortunately that a Betws Y Coed residential lease is a deteriorating 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 depreciation being disguised by increases in the Betws Y Coed property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Betws Y Coed will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Betws Y Coed with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Betws Y Coed lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jasper owned a high value apartment in Betws Y Coed on the market with a lease of fraction over fifty eight years remaining. Jasper on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2013 we were approached by Mr I Bennett who, having was assigned a lease of a first floor flat in Betws Y Coed in August 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable premises in Betws Y Coed with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease finished on 20 January 2102. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2014 we were approached by Mr B Roberts who, having bought a ground floor apartment in Betws Y Coed in October 2006. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical residencies in Betws Y Coed with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 collected quarterly. The lease expired in 2082. Considering the 56 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of legals.