The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lisvane have the legal entitlement to extend the lease for a further 90 years under legislation. Please think carefully before delaying your Lisvane lease extension. Postponing the costs today simply increases the amount you will ultimately have to pay for a lease extension.
Leasehold residencies in Lisvane with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Retaining our service will provide you increased control over the value of your Lisvane leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a studio flat in Lisvane being marketed with a lease of just over 59 years unexpired. Jayden informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. J Fournier took over the lease of a purpose-built flat in Lisvane in September 1999. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparative flats in Lisvane with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed in 2101. Taking into account 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last Spring we were approach by Ms O Robinson , who moved into a first floor flat in Lisvane in September 2005. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Lisvane with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected annually. The lease concluded on 6 April 2090. Having 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.