The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Glyn Ceiriog have the right to extend the lease for an additional 90 years under statute. Please think carefully before delaying your Glyn Ceiriog lease extension. Postponing the costs now simply increases the premium you will eventually be required to pay for a lease extension.
Leasehold residencies in Glyn Ceiriog with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging 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 wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her leasehold apartment in Glyn Ceiriog, Sarah initiated the lease extension process just as her lease was approaching the critical 80-year mark. The legal work completed in May 2011. The landlord’s charges were negotiated to under 700 pounds.
Mr and Mrs. W Taylor owned a studio flat in Glyn Ceiriog in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Glyn Ceiriog with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed in 2100. Taking into account 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
In 2009 we were contacted by Dr H Harris who, having owned a recently refurbished apartment in Glyn Ceiriog in August 1997. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical flats in Glyn Ceiriog with an extended lease were worth £250,400. The average amount of ground rent was £65 collected monthly. The lease concluded in 2089. Taking into account 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus professional charges.