The value of Fishguard leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Fishguard,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 in-depth market knowledge and the close ties they enjoy with Fishguard valuers.
Dylan was the the leasehold owner of a 2 bedroom apartment in Fishguard being sold with a lease of fraction over 61 years outstanding. Dylan on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2012 we were called by Mr and Mrs. Y Bennett who, having purchased a newly refurbished apartment in Fishguard in July 1996. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical homes in Fishguard with a long lease were valued around £198,800. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2080. Given that there were 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.
Last year we were contacted by Mr and Mrs. R Leroy , who moved into a garden apartment in Fishguard in July 1996. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Fishguard with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 16 July 2100. Given that there were 75 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.