When it comes to domestic leasehold premises in Lisvane, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Lisvane with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has below 80 years left, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Lisvane with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you better control over the value of your Lisvane leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her garden flat in Lisvane, Morgan initiated the lease extension process as the eighty year mark was fast advancing. The lease extension was finalised in November 2009. The landlord’s costs were kept to an absolute minimum.
Mrs J James moved into a studio apartment in Lisvane in April 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Lisvane with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed monthly. The lease finished on 26 April 2098. Given that there were 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Dr Shannon Moore owned a recently refurbished flat in Lisvane in November 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Lisvane with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2087. Taking into account 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.