Menai Bridge leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Menai Bridge tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Menai Bridge you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Menai Bridge with in excess of 100 years unexpired on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a freeholder in Menai Bridge,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Menai Bridge valuers.
Alex was the the leasehold owner of a high value apartment in Menai Bridge on the market with a lease of fraction over fifty eight years unexpired. Alex informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr L Gunderson purchased a one bedroom flat in Menai Bridge in May 1997. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical residencies in Menai Bridge with a long lease were in the region of £227,800. The average ground rent payable was £45 collected monthly. The lease concluded in 2091. Given that there were 65 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last April we were approach by Mr Callum Hernández , who owned a first floor apartment in Menai Bridge in August 2011. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar premises in Menai Bridge with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed yearly. The lease finished on 2 July 2102. Given that there were 76 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.