Capel Curig leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Capel Curig residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Capel Curig you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Capel Curig,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 in-depth market knowledge and the close ties they enjoy with Capel Curig valuers.
Gabriel owned a conversion apartment in Capel Curig on the market with a lease of a little over fifty eight years outstanding. Gabriel on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Dr Ryan Williams took over the lease of a studio flat in Capel Curig in August 1997. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar residencies in Capel Curig with a long lease were valued around £275,000. The average amount of ground rent was £55 invoiced yearly. The lease finished on 15 January 2103. Considering the 77 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last Winter we were contacted by Mr and Mrs. J Parker , who purchased a one bedroom flat in Capel Curig in August 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Capel Curig with a long lease were valued around £183,600. The average amount of ground rent was £65 billed yearly. The lease terminated in 2083. Having 57 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.