On the balance of probabilities where you own a flat in Crymych you actually own a long leasehold interest over your property
Leasehold residencies in Crymych with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Crymych can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Crymych lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua owned a conversion apartment in Crymych being sold with a lease of fraction over fifty eight years unexpired. Joshua informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mrs B Ricardo owned a studio apartment in Crymych in October 2005. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable flats in Crymych with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 collected yearly. The lease expired in 2100. Given that there were 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2013 we were contacted by Mr Evan Hernández who, having owned a studio apartment in Crymych in August 2002. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Crymych with an extended lease were valued around £243,000. The average ground rent payable was £65 invoiced quarterly. The lease expired on 9 April 2089. Considering the 63 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.