Glyn Ceiriog leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Glyn Ceiriog tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Glyn Ceiriog you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Glyn Ceiriog leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Seth was the the leasehold owner of a high value flat in Glyn Ceiriog on the market with a lease of a few days over 59 years unexpired. Seth informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.
Mr and Mrs. R Moore owned a one bedroom flat in Glyn Ceiriog in October 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Glyn Ceiriog with 100 year plus lease were valued around £206,200. The average amount of ground rent was £60 collected quarterly. The lease concluded in 2081. Having 56 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
In 2014 we were phoned by Mr E Roberts who, having completed a first floor flat in Glyn Ceiriog in August 1995. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable flats in Glyn Ceiriog with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed on 25 May 2101. Having 76 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.