Blaenau Ffestiniog leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Blaenau Ffestiniog will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Blaenau Ffestiniog with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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; |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Blaenau Ffestiniog,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blaenau Ffestiniog valuers.
Last Autumn Jasper, came precariously close to the eighty-year threshold with the lease on his one bedroom apartment in Blaenau Ffestiniog. Having bought his home two decades ago, the length of the lease was of no interest. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. Jasper extended the lease just ahead of time last March. Jasper and the freeholder ultimately agreed on a premium of £5,500 . If the lease had slid to less than 80 years, the price would have escalated by a minimum £875.
Last month we were contacted by Mr Aarav Hernández , who was assigned a lease of a one bedroom apartment in Blaenau Ffestiniog in November 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Blaenau Ffestiniog with an extended lease were valued about £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ended on 6 April 2089. Having 63 years remaining we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of costs.
Last year we were called by Mr Arthur Bernard , who took over the lease of a one bedroom apartment in Blaenau Ffestiniog in September 2001. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative flats in Blaenau Ffestiniog with a long lease were worth £265,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2100. Given that there were 74 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.