Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Corwen. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Corwen have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give due deliberation before putting off your Corwen lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Corwen can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Corwen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a 2 bedroom apartment in Corwen on the market with a lease of a few days over sixty years left. Finn informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Ms U Rogers acquired a studio apartment in Corwen in March 1997. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable flats in Corwen with an extended lease were valued about £242,600. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 27 January 2093. Taking into account 67 years left we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus expenses.
Mrs Rachael Morris completed a one bedroom flat in Corwen in June 2005. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Corwen with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease ran out on 20 January 2104. Having 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.