Glan Conwy leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Glan Conwy enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Glan Conwy you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Glan Conwy with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Glan Conwy can be a difficult process. We recommend you secure guidance 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 a wealth of experience dealing with 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.
Last year William, came perilously near to the 80-year mark with the lease on his basement flat in Glan Conwy. Having bought his home two decades ago, the unexpired term was of no interest. Fortunately, he became aware that he needed to take action soon on Extending the lease. William extended the lease just under the wire in April. William and the landlord subsequently agreed on an amount of £5,500 . If the lease had slipped to less than 80 years, the amount would have increased by at least £1,000.
Last January we were phoned by Mr Archie Wilson , who acquired a one bedroom apartment in Glan Conwy in March 2011. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparable flats in Glan Conwy with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £60 billed annually. The lease expiry date was on 25 October 2080. Having 55 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
Last month we were phoned by Dr N Lefebvre , who took over the lease of a basement flat in Glan Conwy in June 2004. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar residencies in Glan Conwy with an extended lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed on 2 March 2091. Considering the 66 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.