The closer a residential lease in Fishguard nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of one hundred years to run then this decrease may be fractional however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Fishguard will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Fishguard with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Fishguard leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum owned a high value apartment in Fishguard being sold with a lease of fraction over sixty years outstanding. Callum informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Autumn we were e-mailed by Mrs Kayleigh Smith , who bought a one bedroom apartment in Fishguard in September 2003. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Fishguard with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced per annum. The lease end date was on 12 March 2090. Given that there were 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including fees.
In 2010 we were contacted by Mr and Mrs. O Miller who, having purchased a first floor apartment in Fishguard in February 1995. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative residencies in Fishguard with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 billed quarterly. The lease expired in 2079. Taking into account 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.