Chances are that where you own a flat in Nefyn you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Nefyn,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nefyn valuers.
During the course of the last few months Connor, came critically near to the 80-year mark with the lease on his one bedroom flat in Nefyn. In buying his flat two decades ago, the lease term was of minimal importance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Connor arranged for a lease extension at the eleventh hour last August. Connor and the freeholder ultimately agreed on the final figure of £5,500 . If the lease had dipped below eighty years, the figure would have escalated by at least £1,125.
In 2014 we were phoned by Mr and Mrs. R Young who, having moved into a studio flat in Nefyn in January 2005. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical flats in Nefyn with 100 year plus lease were worth £245,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2094. Having 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Dr Y Hill took over the lease of a studio apartment in Nefyn in May 2009. The question was if we could approximate the price would be for a 90 year lease extension. Comparative residencies in Nefyn with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed annually. The lease elapsed on 10 August 2105. Taking into account 79 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.