The market value of Corwen leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is below than eighty years
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Corwen leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Isaac was the the leasehold proprietor of a studio apartment in Corwen on the market with a lease of a little over fifty eight years outstanding. Isaac informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and secured satisfactory deal informally and sell the property.
In 2012 we were approached by Mrs V Stewart who, having completed a newly refurbished apartment in Corwen in October 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Corwen with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected annually. The lease expired on 2 November 2086. Considering the 60 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including fees.
Last month we were e-mailed by Mr and Mrs. Y Kelly , who bought a purpose-built apartment in Corwen in September 2001. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative premises in Corwen with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2097. Considering the 71 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.