Cemaes Bay residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold premises in Cemaes Bay with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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 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; |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Cemaes Bay,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cemaes Bay valuers.
Alex owned a high value apartment in Cemaes Bay on the market with a lease of a few days over 59 years outstanding. Alex on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2011 we were contacted by Dr V Cook who, having bought a first floor flat in Cemaes Bay in May 2009. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar flats in Cemaes Bay with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended in 2096. Having 70 years remaining we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including professional charges.
Last year we were called by Ms Rachael Parker , who owned a ground floor flat in Cemaes Bay in May 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Cemaes Bay with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease ended on 28 January 2076. Having 50 years outstanding we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including legals.