The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Snowdonia have the right to extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Snowdonia lease extension. Postponing that expense now simply increases the premium you will ultimately have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Snowdonia,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 experience and the close ties they enjoy with Snowdonia valuers.
Two years ago Leo, came seriously near to the 80-year mark with the lease on his purpose- built flat in Snowdonia. Having purchased his flat 18 years previously, the lease term was of little concern. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. Leo extended the lease just in the nick of time in June. Leo and the landlord in the end settled on a premium of £6,000 . If the lease had dropped below eighty years, the price would have become more costly by at least £925.
Last April we were approach by Mr K Fournier , who took over the lease of a recently refurbished flat in Snowdonia in March 2006. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Snowdonia with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expiry date was on 1 February 2096. Given that there were 71 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Summer we were phoned by Mr Muhammad Hall , who was assigned a lease of a studio flat in Snowdonia in April 2006. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar properties in Snowdonia with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired in 2076. Having 51 years left we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus professional charges.