The market value of Garndolbenmaen leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than eighty years
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Garndolbenmaen,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 experience and the close ties they enjoy with Garndolbenmaen valuers.
In recent months Luca, started to get close to the 80-year mark with the lease on his leasehold apartment in Garndolbenmaen. In buying his property two decades ago, the length of the lease was of no interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Luca arranged for a lease extension just in the nick of time in April. Luca and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by a minimum £900.
Last Winter we were contacted by Dr Hunter Smith , who owned a one bedroom apartment in Garndolbenmaen in September 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Garndolbenmaen with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 billed monthly. The lease terminated on 19 May 2091. Having 66 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Mr and Mrs. K Adams took over the lease of a first floor apartment in Garndolbenmaen in November 2009. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar premises in Garndolbenmaen with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended on 6 July 2102. Having 77 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.