The re-sale value of a leasehold property in Rhos On Sea is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the eighty year threshold. Current legislation entitles Rhos On Sea qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Rhos On Sea,the lease extension solicitors 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 Rhos On Sea valuers.
In the wake of eight months of lengthy discussions with the landlord of her leasehold apartment in Rhos On Sea, Naomi initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension completed in June 2013. The landlord’s charges were restricted to a tad over 500 GBP.
Mrs Megan Smith completed a basement flat in Rhos On Sea in February 1999. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative properties in Rhos On Sea with a long lease were in the region of £275,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2102. Taking into account 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
In 2012 we were approached by Mr D Williams who, having moved into a first floor apartment in Rhos On Sea in March 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Rhos On Sea with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 billed yearly. The lease terminated on 20 February 2082. Having 57 years outstanding we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.