Menai Bridge leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Menai Bridge will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Menai Bridge,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Menai Bridge valuers.
Aaron owned a conversion flat in Menai Bridge on the market with a lease of a little over fifty eight years left. Aaron informally approached his landlord being a well known London-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 subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Last Christmas we were contacted by Mr and Mrs. A González , who bought a one bedroom apartment in Menai Bridge in August 2012. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Menai Bridge with a long lease were in the region of £237,600. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 24 November 2092. Having 67 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.
In 2009 we were phoned by Dr I Carter who, having was assigned a lease of a studio apartment in Menai Bridge in September 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Menai Bridge with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed on 28 July 2103. Taking into account 78 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.