The market value of Creigiau 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 significantly once the remaining term is less than 80 years
Leasehold residencies in Creigiau with over one hundred years outstanding 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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you better control over the value of your Creigiau leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Joshua, came perilously near to the eighty-year threshold with the lease on his basement flat in Creigiau. In buying his home two decades ago, the length of the lease was of little significance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Joshua arranged for a lease extension at the eleventh hour in September. Joshua and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he had missed the deadline, the amount would have gone up by at least £1,125.
Last June we were phoned by Dr Jacob Rose , who purchased a basement flat in Creigiau in January 2001. The question was if we could approximate the price would be to extend the lease by 90 years. Identical homes in Creigiau with a long lease were worth £203,200. The average amount of ground rent was £65 invoiced quarterly. The lease ended in 2087. Taking into account 61 years remaining we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus fees.
Last Christmas we were called by Mr B Cooper , who purchased a basement flat in Creigiau in June 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Creigiau with an extended lease were worth £260,000. The average ground rent payable was £50 collected monthly. The lease expired on 13 July 2098. Considering the 72 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.