Glan Conwy residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Glan Conwy,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Glan Conwy valuers.
In the wake of eight months of protracted correspondence with the landlord of her first floor apartment in Glan Conwy, Charlotte commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction completed in June 2006. The landlord’s fees were kept to an absolute minimum.
In 2011 we were called by Mr F Nguyen who, having moved into a studio apartment in Glan Conwy in October 2007. The question was if we could approximate the price could be for a 90 year lease extension. Similar properties in Glan Conwy with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended on 15 July 2093. Having 68 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Spring we were e-mailed by Dr M Nguyen , who was assigned a lease of a one bedroom apartment in Glan Conwy in January 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Glan Conwy with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 collected per annum. The lease ran out on 5 January 2104. Having 79 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.