It’s a harsh truth that a Felinheli residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Felinheli property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Most flat owners in Felinheli will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Felinheli,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Felinheli valuers.
Oliver was the the leasehold proprietor of a studio flat in Felinheli being marketed with a lease of just over 61 years remaining. Oliver on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. D Roberts owned a garden apartment in Felinheli in February 1999. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical homes in Felinheli with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed in 2075. Given that there were 50 years left we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including fees.
In 2009 we were called by Dr Natasha Jackson who, having moved into a studio apartment in Felinheli in February 2002. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Felinheli with a long lease were worth £208,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 11 August 2086. Having 61 years outstanding we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.