Criccieth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Criccieth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Criccieth you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Criccieth flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
Retaining our service gives you enhanced control over the value of your Criccieth leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Toby, came very near to the eighty-year threshold with the lease on his one bedroom flat in Criccieth. In buying his flat 19 years ago, the unexpired term was of little relevance. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Toby extended the lease just ahead of time in April. Toby and the freeholder via the management company in the end agreed on sum of £6,000 . If he not met the deadline, the amount would have become more costly by at least £1,050.
Mr and Mrs. B Davies purchased a one bedroom apartment in Criccieth in September 1998. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable residencies in Criccieth with 100 year plus lease were valued about £290,000. The average ground rent payable was £60 collected annually. The lease lapsed in 2106. Considering the 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Mr and Mrs. E François completed a first floor flat in Criccieth in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Criccieth with a long lease were valued around £200,800. The average amount of ground rent was £65 billed every twelve months. The lease finished in 2086. Having 60 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of fees.