The value of Crynant leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is below than eighty years
Leasehold premises in Crynant with in excess of one hundred 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with undertake Crynant 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.
Two years ago Max, came precariously close to the 80-year threshold with the lease on his first floor flat in Crynant. Having purchased his flat two decades ago, the lease term was of minimal concern. by good luck, he noticed he needed to take steps soon on Extending the lease. Max extended the lease just under the wire in January. Max and the freeholder via the management company in the end settled on the final figure of £5,500 . If the lease had descended lower than 80 years, the price would have escalated by a minimum £1,075.
Last Spring we were e-mailed by Dr O André , who bought a studio flat in Crynant in January 2004. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Identical flats in Crynant with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease terminated on 14 November 2089. Given that there were 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus professional charges.
In 2014 we were approached by Mr K Pérez who, having completed a ground floor apartment in Crynant in October 2008. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Identical flats in Crynant with a long lease were valued about £189,000. The average ground rent payable was £55 billed quarterly. The lease end date was on 12 January 2078. Given that there were 53 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.