It’s a harsh truth that a Menai Bridge residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Menai Bridge property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Menai Bridge will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Menai Bridge with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you better control over the value of your Menai Bridge leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her ground floor apartment in Menai Bridge, Emily started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The lease extension was concluded in July 2009. The freeholder’s costs were restricted to below 700 pounds.
Mr L Martínez completed a ground floor apartment in Menai Bridge in September 1999. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable properties in Menai Bridge with a long lease were in the region of £168,800. The average amount of ground rent was £60 collected annually. The lease finished in 2080. Considering the 55 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
In 2013 we were phoned by Ms E Díaz who, having moved into a garden flat in Menai Bridge in January 2008. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar flats in Menai Bridge with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease concluded in 2091. Having 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.