The closer a residential lease in Snowdonia nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Snowdonia will qualify for this right; however a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Snowdonia with over 100 years remaining 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
Lease extensions in Snowdonia can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Snowdonia lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the freeholder of her garden apartment in Snowdonia, Chelsea started the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was finalised in May 2011. The freeholder’s fees were kept to an absolute minimum.
Last May we were called by Mr and Mrs. D Stewart , who bought a studio flat in Snowdonia in April 2012. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparative premises in Snowdonia with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 9 March 2085. Considering the 59 years outstanding we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.
Last Autumn we were phoned by Dr Sam Bonnet , who moved into a basement apartment in Snowdonia in September 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Similar flats in Snowdonia with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed in 2096. Given that there were 70 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.