Chances are that where you own a flat in Caernarfon you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Caernarfon can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Caernarfon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a studio apartment in Caernarfon on the market with a lease of just over 61 years left. Ethan informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. 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 Ethan to invoke his statutory right. Ethan procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2009 we were contacted by Dr O Morel who, having was assigned a lease of a studio apartment in Caernarfon in August 1999. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Caernarfon with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2096. Given that there were 70 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2011 we were phoned by Mr and Mrs. N Mercier who, having bought a purpose-built flat in Caernarfon in June 2011. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Caernarfon with an extended lease were valued around £218,400. The average ground rent payable was £60 billed monthly. The lease elapsed in 2085. Having 59 years left we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 plus costs.