Crymych leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Crymych will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Crymych with over 100 years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Crymych,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crymych valuers.
Dylan was the the leasehold owner of a high value apartment in Crymych on the market with a lease of a few days over 72 years unexpired. Dylan informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Summer we were e-mailed by Dr M Lee , who moved into a basement apartment in Crymych in November 2007. The question was if we could estimate the price could be to extend the lease by an additional years. Identical flats in Crymych with an extended lease were valued around £240,600. The mid-range amount of ground rent was £60 collected yearly. The lease ended on 11 July 2087. Having 62 years left we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.
In 2009 we were phoned by Dr Leah Richardson who, having completed a one bedroom flat in Crymych in May 2004. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Crymych with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 collected monthly. The lease concluded in 2076. Having 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.