The market value of a leasehold property in Glan Conwy depends on how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year threshold. Statute enables Glan Conwy qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 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.
Lewis owned a studio flat in Glan Conwy on the market with a lease of a few days over sixty years outstanding. Lewis informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Summer we were e-mailed by Mr Alex Johnson , who took over the lease of a first floor apartment in Glan Conwy in April 1996. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in Glan Conwy with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 collected per annum. The lease expired in 2085. Having 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.
Mr D Pérez took over the lease of a garden flat in Glan Conwy in November 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar properties in Glan Conwy with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out on 22 March 2096. Considering the 72 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.