Bodelwyddan leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Bodelwyddan enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bodelwyddan you should see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Bodelwyddan leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Bodelwyddan with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Bodelwyddan,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bodelwyddan valuers.
In recent months Matthew, came dangerously close to the eighty-year mark with the lease on his one bedroom flat in Bodelwyddan. Having purchased his home twenty years previously, the unexpired term was of minimal concern. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Matthew arranged for a lease extension just under the wire last June. Matthew and the freeholder eventually agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £1,100.
Ms J Howard completed a one bedroom apartment in Bodelwyddan in July 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Bodelwyddan with an extended lease were valued about £173,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed in 2080. Taking into account 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
In 2010 we were e-mailed by Mr and Mrs. E García who, having bought a one bedroom flat in Bodelwyddan in February 1997. The question was if we could estimate the price could be for a 90 year lease extension. Comparable homes in Bodelwyddan with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 23 July 2091. Taking into account 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.