Chances are that where you own a flat in Dulas and Nebo you actually own a long leasehold interest over your property
Leasehold residencies in Dulas and Nebo with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you better control over the value of your Dulas and Nebo leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Muhammad, started to get close to the eighty-year threshold with the lease on his leasehold flat in Dulas and Nebo. In buying his flat two decades ago, the unexpired term was of no interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Muhammad extended the lease just ahead of time last September. Muhammad and the landlord ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,150.
Mr and Mrs. C Gunderson moved into a newly refurbished apartment in Dulas and Nebo in May 2011. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Dulas and Nebo with a long lease were valued about £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease expired on 16 February 2079. Having 54 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.
Mr and Mrs. S Vincent moved into a recently refurbished flat in Dulas and Nebo in November 2004. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparative premises in Dulas and Nebo with a long lease were worth £227,800. The mid-range amount of ground rent was £45 collected annually. The lease concluded on 8 March 2090. Having 65 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.