Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Croesyceiliog. Inevitably, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Croesyceiliog have the right to extend the lease for an additional ninety years in accordance with statute. Do give due consideration before putting off your Croesyceiliog lease extension. Putting off that expense now only increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with over 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 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Croesyceiliog 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.
18 months ago Dylan, came very close to the eighty-year threshold with the lease on his first floor apartment in Croesyceiliog. Having purchased his property two decades ago, the length of the lease was of no significance. by good luck, he recognised he needed to take steps soon on a lease extension. Dylan was able to extend his lease just under the wire in July. Dylan and the freeholder via the management company in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £975.
In 2010 we were approached by Mr and Mrs. J González who, having completed a one bedroom flat in Croesyceiliog in August 1998. The question was if we could estimate the price could be to extend the lease by 90 years. Identical residencies in Croesyceiliog with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease ended on 12 March 2095. Having 69 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
Last Autumn we were approach by Mr and Mrs. R Brooks , who completed a recently refurbished flat in Croesyceiliog in February 1997. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar premises in Croesyceiliog with a long lease were worth £216,000. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2084. Considering the 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.