The value of Criccieth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Criccieth can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 Criccieth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Aaron, started to get close to the 80-year mark with the lease on his one bedroom apartment in Criccieth. Having purchased his home 18 years previously, the length of the lease was of minimal importance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Aaron was able to extend his lease just ahead of time last September. Aaron and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had gone below eighty years, the sum would have escalated by at least £950.
Last Christmas we were phoned by Mr Ryan Miller , who was assigned a lease of a one bedroom flat in Criccieth in August 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Criccieth with a long lease were valued about £265,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2098. Considering the 73 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last October we were e-mailed by Dr Luca Lefebvre , who completed a one bedroom apartment in Criccieth in February 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical properties in Criccieth with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish in 2078. Having 53 years outstanding we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including expenses.