With a residential leasehold property in Blaenau Ffestiniog, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Leasehold owners in Blaenau Ffestiniog with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Blaenau Ffestiniog with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Blaenau Ffestiniog leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a 2 bedroom apartment in Blaenau Ffestiniog on the market with a lease of a little over sixty years left. Mason on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mrs R Gunderson who, having purchased a one bedroom flat in Blaenau Ffestiniog in November 2000. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable properties in Blaenau Ffestiniog with an extended lease were worth £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2085. Taking into account 60 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
Mr and Mrs. H André acquired a purpose-built flat in Blaenau Ffestiniog in October 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Blaenau Ffestiniog with an extended lease were valued about £255,000. The average ground rent payable was £50 invoiced monthly. The lease concluded on 13 April 2096. Considering the 71 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.