The market value of Caersws leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Caersws with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Caersws,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 in-depth market knowledge and the close ties they enjoy with Caersws valuers.
Seth was the the leasehold proprietor of a high value apartment in Caersws on the market with a lease of just over sixty years unexpired. Seth on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Seth to exercise his statutory right. Seth procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr P Cox moved into a one bedroom apartment in Caersws in July 2012. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable residencies in Caersws with a long lease were valued about £250,400. The mid-range ground rent payable was £65 collected annually. The lease terminated in 2089. Considering the 64 years outstanding we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.
Last Summer we were contacted by Ms Rhiannon Hill , who owned a basement apartment in Caersws in March 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Caersws with a long lease were valued about £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease termination date was on 16 June 2078. Considering the 53 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.