Croesyceiliog leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Croesyceiliog will usually qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Croesyceiliog with over one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Half a year ago Matthew, came critically close to the 80-year mark with the lease on his ground floor flat in Croesyceiliog. Having bought his property 18 years previously, the length of the lease was of minimal concern. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Matthew extended the lease at the eleventh hour last August. Matthew and the landlord eventually agreed on sum of £6,000 . If the lease had fallen lower than 80 years, the price would have gone up by at least £925.
Dr Edward Sharif took over the lease of a ground floor flat in Croesyceiliog in February 2002. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in Croesyceiliog with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 billed yearly. The lease expired on 27 June 2089. Considering the 64 years left we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
In 2009 we were called by Dr W Fournier who, having took over the lease of a purpose-built apartment in Croesyceiliog in September 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical properties in Croesyceiliog with 100 year plus lease were valued about £189,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended in 2078. Considering the 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.