With a residential leasehold premises in Kinmel Bay, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years left. Leasehold owners in Kinmel Bay with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years outstanding, under the relevant statute the freeholder can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Kinmel Bay can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Kinmel Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Lucas, came very close to the eighty-year mark with the lease on his studio flat in Kinmel Bay. In buying his flat 18 years ago, the length of the lease was of little bearing. Thankfully, he noticed he would soon be paying way over the odds for Extending the lease. Lucas extended the lease just under the wire in March. Lucas and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had gone to less than eighty years, the amount would have escalated by a minimum £1,150.
Last July we were e-mailed by Mr and Mrs. U Lambert , who completed a one bedroom flat in Kinmel Bay in July 2001. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative flats in Kinmel Bay with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 7 January 2093. Considering the 68 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2009 we were called by Mr and Mrs. H Hill who, having owned a ground floor flat in Kinmel Bay in November 2010. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Kinmel Bay with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 26 May 2104. Taking into account 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.