On the balance of probabilities where you own a flat in Bodelwyddan you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Bodelwyddan,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bodelwyddan valuers.
Edward owned a studio flat in Bodelwyddan on the market with a lease of just over fifty eight years outstanding. Edward informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2010 we were approached by Dr Francesca Green who, having purchased a purpose-built apartment in Bodelwyddan in June 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar flats in Bodelwyddan with a long lease were in the region of £242,600. The average ground rent payable was £45 collected yearly. The lease terminated on 12 March 2092. Considering the 67 years left we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.
In 2014 we were called by Dr K Mercier who, having moved into a purpose-built apartment in Bodelwyddan in August 1995. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Bodelwyddan with a long lease were worth £280,000. The average amount of ground rent was £55 billed yearly. The lease terminated in 2103. Taking into account 78 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.