The market value of a leasehold property in Kinmel Bay is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Kinmel Bay qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Kinmel Bay with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Kinmel Bay,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kinmel Bay valuers.
Arthur was the the leasehold owner of a high value apartment in Kinmel Bay being marketed with a lease of a few days over 72 years left. Arthur on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Ms Hannah Howard was assigned a lease of a first floor apartment in Kinmel Bay in March 2011. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Kinmel Bay with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 3 February 2097. Considering the 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were approached by Ms E Watson who, having was assigned a lease of a one bedroom flat in Kinmel Bay in May 2008. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Identical homes in Kinmel Bay with a long lease were in the region of £254,200. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2077. Having 51 years unexpired we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 plus expenses.