Cemaes Bay 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 permits qualifying Cemaes Bay residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Cemaes Bay you should see if your lease has between 70 and ninety years remaining. There are good reasons why a Cemaes Bay leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Yorkshire 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. |
The lawyers that we work with procure Cemaes Bay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Mason was the the leasehold proprietor of a studio flat in Cemaes Bay on the market with a lease of a little over sixty years remaining. Mason on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Ms H Lewis purchased a purpose-built apartment in Cemaes Bay in November 1995. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar premises in Cemaes Bay with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 collected per annum. The lease lapsed in 2082. Having 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.
Dr Leah Martínez was assigned a lease of a basement flat in Cemaes Bay in April 1998. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative properties in Cemaes Bay with 100 year plus lease were valued around £242,600. The average amount of ground rent was £45 billed quarterly. The lease ended in 2093. Considering the 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.