Bodelwyddan leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Bodelwyddan will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold residencies 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 value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with undertake Bodelwyddan lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Callum, came dangerously close to the eighty-year threshold with the lease on his first floor apartment in Bodelwyddan. Having bought his property two decades ago, the lease term was of no concern. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Callum was able to extend his lease just under the wire last August. Callum and the freeholder in the end settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,025.
Last Winter we were approach by Mr Joseph Cox , who moved into a one bedroom flat in Bodelwyddan in November 2005. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Bodelwyddan with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish in 2088. Considering the 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.
In 2012 we were phoned by Mr and Mrs. R Gómez who, having moved into a garden flat in Bodelwyddan in January 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Bodelwyddan with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed yearly. The lease finished on 22 February 2099. Having 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.