Crickhowell residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Crickhowell with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Crickhowell,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crickhowell valuers.
In recent months Blake, came very near to the eighty-year mark with the lease on his leasehold flat in Crickhowell. Having bought his property two decades ago, the lease term was of minimal importance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Blake was able to extend his lease at the eleventh hour last April. Blake and the landlord subsequently settled on a premium of £6,000 . If he not met the deadline, the price would have escalated by a minimum £875.
Mr and Mrs. J Nelson bought a newly refurbished apartment in Crickhowell in March 2000. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical properties in Crickhowell with a long lease were in the region of £261,600. The average amount of ground rent was £60 collected every twelve months. The lease elapsed in 2078. Considering the 52 years outstanding we calculated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus fees.
Last year we were approach by Dr Freddie Martinez , who completed a studio apartment in Crickhowell in April 2005. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Crickhowell with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease ended on 2 January 2089. Taking into account 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.