For anyone whose Glan Conwy property is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold premises in Glan Conwy with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Glan Conwy can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Glan Conwy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted negotiations with the freeholder of her studio apartment in Glan Conwy, Molly commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was finalised in October 2013. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. O Morris , who bought a studio apartment in Glan Conwy in September 1997. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative properties in Glan Conwy with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed in 2085. Considering the 59 years unexpired we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Mr and Mrs. N López moved into a newly refurbished flat in Glan Conwy in March 2006. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative premises in Glan Conwy with an extended lease were valued around £255,000. The average ground rent payable was £50 billed monthly. The lease finished on 26 September 2096. Given that there were 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including professional charges.