Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Rhosneigr. Inevitably, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Rhosneigr have the right to extend the lease for a further 90 years in accordance with statute. Do give careful deliberation before putting off your Rhosneigr lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Rhosneigr leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Daniel, started to get close to the eighty-year mark with the lease on his garden apartment in Rhosneigr. In buying his flat 19 years previously, the lease term was of no interest. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Daniel arranged for a lease extension at the eleventh hour in August. Daniel and the freeholder in the end settled on sum of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,000.
In 2014 we were phoned by Mrs Alice Williams who, having was assigned a lease of a garden flat in Rhosneigr in June 2009. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable premises in Rhosneigr with 100 year plus lease were valued about £240,600. The average ground rent payable was £65 invoiced annually. The lease terminated in 2088. Considering the 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
Last Christmas we were phoned by Mr and Mrs. M Hall , who was assigned a lease of a newly refurbished apartment in Rhosneigr in February 2004. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical homes in Rhosneigr with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished on 2 May 2077. Considering the 51 years left we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.