As the the remaining lease term of a Lisvane residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Lisvane will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Lisvane with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
Hunter was the the leasehold owner of a 2 bedroom flat in Lisvane being sold with a lease of just over sixty years outstanding. Hunter informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last year we were phoned by Dr Bethany Collins , who was assigned a lease of a recently refurbished flat in Lisvane in May 2010. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Lisvane with a long lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed in 2082. Having 56 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
In 2012 we were called by Dr L Gunderson who, having completed a garden flat in Lisvane in November 2003. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar homes in Lisvane with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected monthly. The lease ended in 2102. Considering the 76 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.