As the the remaining lease term of a Glyn Ceiriog domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Glyn Ceiriog will qualify for this right; nevertheless a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Glyn Ceiriog leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her leasehold flat in Glyn Ceiriog, Francesca started the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was concluded in January 2015. The freeholder’s fees were negotiated to under 700 GBP.
Last Autumn we were e-mailed by Dr M Flores , who took over the lease of a first floor apartment in Glyn Ceiriog in March 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Glyn Ceiriog with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 invoiced annually. The lease finished on 12 May 2105. Considering the 80 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
Mrs M Mitchell was assigned a lease of a purpose-built flat in Glyn Ceiriog in September 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Glyn Ceiriog with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated in 2094. Having 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.