The market value of a leasehold property in Criccieth is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation enables Criccieth qualifying lessees to an additional term of 90 years on top of the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancers that we work with handle Criccieth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing protracted discussions with the freeholder of her studio flat in Criccieth, Danielle commenced the lease extension process as the 80 year threshold was fast nearing. The transaction was finalised in March 2006. The landlord’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. O Sharif who, having purchased a first floor apartment in Criccieth in November 1997. The question was if we could estimate the price could be for a ninety year lease extension. Comparative flats in Criccieth with an extended lease were in the region of £176,200. The average amount of ground rent was £65 invoiced per annum. The lease expired on 3 November 2082. Considering the 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including fees.
In 2011 we were contacted by Mr and Mrs. P Lefebvre who, having completed a first floor flat in Criccieth in April 2003. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Criccieth with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished in 2093. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including costs.