Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Betws Y Coed. Clearly, the term of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Betws Y Coed have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due attention before delaying your Betws Y Coed lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Betws Y Coed with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Off the back of unsuccessful correspondence with the landlord of her basement flat in Betws Y Coed, Hannah commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was concluded in May 2009. The freeholder’s charges were restricted to approximately 700 GBP.
Last Summer we were phoned by Dr Leon Moreau , who moved into a one bedroom apartment in Betws Y Coed in March 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Betws Y Coed with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 invoiced yearly. The lease elapsed in 2084. Given that there were 59 years outstanding we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.
In 2011 we were e-mailed by Ms R Hill who, having acquired a ground floor flat in Betws Y Coed in November 1999. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Betws Y Coed with a long lease were valued around £255,000. The mid-range ground rent payable was £50 collected monthly. The lease end date was on 26 October 2095. Taking into account 70 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.