The only way is down when it comes to Cardigan lease terms. Cardigan properties that have a remaining term less than than eighty years will drop in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Cardigan with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Cardigan leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Nathan owned a high value flat in Cardigan on the market with a lease of fraction over sixty years left. Nathan on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
In 2009 we were called by Mr Rory Peterson who, having bought a garden apartment in Cardigan in March 2001. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical homes in Cardigan with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease concluded on 13 March 2075. Having 50 years unexpired we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 plus costs.
Mr and Mrs. W Norbert completed a one bedroom flat in Cardigan in August 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Cardigan with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced monthly. The lease concluded on 8 November 2086. Considering the 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.