The only way is down when it comes to Mid Wales lease terms. Mid Wales flats that have a residual term shorter than eighty years will de-escalate in value even faster, and the cost to extend your lease will increase.
Leasehold residencies in Mid Wales with more than 100 years remaining on the lease are often regarded as a ‘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 maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Mid Wales leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a high value flat in Mid Wales on the market with a lease of a little over 72 years unexpired. Harry informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Dr Poppy Scott completed a purpose-built flat in Mid Wales in May 2001. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar flats in Mid Wales with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired on 5 April 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.
Ms V Harris moved into a studio apartment in Mid Wales in October 1997. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparable properties in Mid Wales with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed in 2097. Considering the 71 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.