It’s a harsh certainty that a Glyn Ceiriog residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Glyn Ceiriog property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Glyn Ceiriog will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Glyn Ceiriog lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Blake, started to get close to the eighty-year mark with the lease on his one bedroom flat in Glyn Ceiriog. Having purchased his property 18 years previously, the lease term was of no interest. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Blake arranged for a lease extension just under the wire in January. Blake and the landlord subsequently settled on an amount of £6,000 . If the lease had slid lower than eighty years, the premium would have increased by a minimum £1,000.
In 2014 we were approached by Ms Rachel Torres who, having completed a one bedroom flat in Glyn Ceiriog in August 1995. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparable homes in Glyn Ceiriog with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2085. Having 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus costs.
In 2009 we were contacted by Mr and Mrs. W Stewart who, having purchased a one bedroom flat in Glyn Ceiriog in July 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Glyn Ceiriog with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 20 February 2105. Having 79 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.