On the balance of probabilities if you own a flat in Hawarden you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, 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 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Hawarden,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hawarden valuers.
Last October Gabriel, came critically near to the eighty-year threshold with the lease on his two bedroom apartment in Hawarden. Having bought his flat 18 years ago, the length of the lease was of minimal concern. As luck would have it, he recognised he needed to take steps soon on a lease extension. Gabriel was able to extend his lease at the eleventh hour last May. Gabriel and the freeholder subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £900.
Mrs Caitlin Mason moved into a ground floor flat in Hawarden in September 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Hawarden with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 12 June 2094. Given that there were 68 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2013 we were phoned by Dr Connor Miller who, having completed a recently refurbished flat in Hawarden in August 2011. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative flats in Hawarden with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected annually. The lease terminated in 2083. Given that there were 57 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.