Rhosneigr leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher amount will be due. Flat owners in Rhosneigr will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a freeholder in Rhosneigr,the lease extension lawyers 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 Rhosneigr valuers.
Half a year ago Aarav, started to get near to the 80-year threshold with the lease on his ground floor flat in Rhosneigr. Having bought his property 18 years ago, the length of the lease was of little concern. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Aarav arranged for a lease extension at the eleventh hour in July. Aarav and the freeholder via the management company subsequently settled on sum of £5,000 . If he not met the deadline, the price would have become more costly by at least £925.
In 2009 we were e-mailed by Dr W Gómez who, having purchased a garden apartment in Rhosneigr in April 1995. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Rhosneigr with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded in 2094. Considering the 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2009 we were e-mailed by Mr and Mrs. J Davis who, having bought a first floor flat in Rhosneigr in April 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Rhosneigr with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected quarterly. The lease elapsed in 2083. Given that there were 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.