The re-sale value of a leasehold property in Garndolbenmaen depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year cut off point. Current legislation enables Garndolbenmaen qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Garndolbenmaen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Alfie was the the leasehold owner of a 2 bedroom apartment in Garndolbenmaen on the market with a lease of fraction over 59 years unexpired. Alfie informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Autumn we were phoned by Mr and Mrs. P Bailey , who was assigned a lease of a newly refurbished apartment in Garndolbenmaen in March 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Garndolbenmaen with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected annually. The lease expired on 1 April 2079. Having 54 years outstanding we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus professional charges.
In 2013 we were called by Dr T Scott who, having purchased a first floor flat in Garndolbenmaen in June 2011. The question was if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Garndolbenmaen with an extended lease were valued around £232,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 28 November 2090. Having 65 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.