Morfa Nefyn leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 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 additional value that a lease extension will add to the property. Flat owners in Morfa Nefyn will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Morfa Nefyn with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with procure Morfa Nefyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of lengthy correspondence with the landlord of her studio apartment in Morfa Nefyn, Bethany initiated the lease extension process as the eighty year mark was fast coming. The legal work was finalised in November 2005. The landlord’s costs were kept to an absolute minimum.
Dr Aiden Hernández owned a first floor apartment in Morfa Nefyn in March 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Morfa Nefyn with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 invoiced yearly. The lease finished on 17 May 2106. Taking into account 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Last Christmas we were e-mailed by Dr Henry Hill , who was assigned a lease of a ground floor apartment in Morfa Nefyn in September 2009. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative properties in Morfa Nefyn with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 12 February 2095. Taking into account 69 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.