It’s an underpublicised certainty that a Blaenau Ffestiniog residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Blaenau Ffestiniog property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Blaenau Ffestiniog will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Blaenau Ffestiniog,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blaenau Ffestiniog valuers.
Ollie owned a conversion flat in Blaenau Ffestiniog being sold with a lease of fraction over 72 years remaining. Ollie informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. B Collins who, having bought a garden apartment in Blaenau Ffestiniog in May 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Blaenau Ffestiniog with a long lease were valued around £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2078. Considering the 53 years remaining we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of legals.
In 2012 we were phoned by Dr P Nguyen who, having moved into a newly refurbished apartment in Blaenau Ffestiniog in June 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable homes in Blaenau Ffestiniog with 100 year plus lease were in the region of £220,400. The mid-range amount of ground rent was £45 collected annually. The lease expired on 18 August 2089. Considering the 64 years left we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of fees.