On the balance of probabilities where you own a flat in Rhiwderin you actually own a long leasehold interest over your property
Leasehold properties in Rhiwderin with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Rhiwderin leasehold, as your property will be more valuable and saleable in respect 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.
Two years ago Daniel, came perilously near to the 80-year mark with the lease on his two bedroom flat in Rhiwderin. In buying his home two decades ago, the length of the lease was of no significance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Daniel extended the lease just in the nick of time last March. Daniel and the freeholder eventually agreed on sum of £5,500 . If the lease had slid below 80 years, the price would have escalated by a minimum £1,100.
In 2013 we were approached by Mr and Mrs. S Kelly who, having moved into a studio apartment in Rhiwderin in March 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Rhiwderin with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2101. Having 76 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last month we were contacted by Ms B Bertrand , who purchased a one bedroom apartment in Rhiwderin in November 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Rhiwderin with a long lease were in the region of £176,200. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 22 June 2081. Considering the 56 years unexpired we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of costs.