When it comes to long leasehold property in Fishguard, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years left. Leasehold owners in Fishguard with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years left, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Fishguard with more than one hundred years outstanding on the lease are sometimes 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 warrant 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Fishguard,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 experience and the close ties they enjoy with Fishguard valuers.
Twenty four months ago Freddie, came dangerously close to the eighty-year mark with the lease on his leasehold flat in Fishguard. Having purchased his property two decades ago, the lease term was of little concern. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Freddie was able to extend his lease just ahead of time in September. Freddie and the landlord eventually agreed on an amount of £6,000 . If the lease had slid to less than eighty years, the premium would have increased by at least £1,125.
In 2009 we were called by Mrs F Moore who, having purchased a one bedroom apartment in Fishguard in September 2005. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Fishguard with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 billed monthly. The lease termination date was on 14 March 2102. Taking into account 76 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
Dr Nathan García purchased a first floor flat in Fishguard in March 2011. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative properties in Fishguard with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed on 5 May 2091. Having 65 years left we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus legals.