The re-sale value of a leasehold property in Lisvane depends on how long the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the eighty year threshold. Statute enables Lisvane qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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:
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The conveyancers that we work with procure Lisvane 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 conveyancer we work with provide it.
Last Autumn Reuben, started to get near to the 80-year mark with the lease on his ground floor flat in Lisvane. In buying his home two decades ago, the length of the lease was of little bearing. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Reuben arranged for a lease extension just in the nick of time in August. Reuben and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slid lower than eighty years, the premium would have escalated by at least £1,150.
Last Autumn we were phoned by Dr L Mason , who took over the lease of a ground floor flat in Lisvane in October 2012. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable residencies in Lisvane with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected every twelve months. The lease expired on 8 September 2087. Having 61 years unexpired we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.
Dr Andrew Davis moved into a first floor flat in Lisvane in May 1997. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable flats in Lisvane with a long lease were worth £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out on 15 March 2076. Having 50 years outstanding we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.