With a residential leasehold property in Capel Curig, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Leasehold owners in Capel Curig with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years remaining, under the relevant Act the landlord can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Capel Curig,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Capel Curig valuers.
Last Spring Muhammad, came dangerously near to the eighty-year threshold with the lease on his garden flat in Capel Curig. In buying his home 18 years previously, the length of the lease was of minimal importance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Muhammad extended the lease just in the nick of time in January. Muhammad and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If the lease had slid below 80 years, the premium would have escalated by at least £1,075.
Dr Joseph Brown took over the lease of a one bedroom flat in Capel Curig in January 1999. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Capel Curig with a long lease were valued around £227,800. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 10 March 2091. Having 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.
In 2011 we were contacted by Mr and Mrs. T Dupont who, having was assigned a lease of a purpose-built flat in Capel Curig in May 2004. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar flats in Capel Curig with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease lapsed in 2102. Considering the 76 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.