The re-sale value of a leasehold property in Garndolbenmaen is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year mark. Statute enables Garndolbenmaen qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Garndolbenmaen with in excess of one hundred years unexpired on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Garndolbenmaen can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Garndolbenmaen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan owned a high value apartment in Garndolbenmaen being sold with a lease of just over fifty eight years unexpired. Evan informally approached his landlord 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 an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were e-mailed by Mrs B Taylor , who purchased a one bedroom flat in Garndolbenmaen in November 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Garndolbenmaen with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed in 2103. Given that there were 78 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
In 2012 we were e-mailed by Mr H François who, having acquired a purpose-built flat in Garndolbenmaen in August 2007. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar properties in Garndolbenmaen with 100 year plus lease were worth £191,000. The mid-range ground rent payable was £65 invoiced yearly. The lease expiry date was in 2083. Given that there were 58 years remaining we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including professional charges.