Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Snowdonia. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Snowdonia have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before putting off your Snowdonia lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Yorkshire 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. |
Lease extensions in Snowdonia can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Snowdonia lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the landlord of her one bedroom apartment in Snowdonia, Bethany started the lease extension process just as her lease was coming close to the all-important 80-year threshold. The transaction was concluded in September 2009. The freeholder’s costs were restricted to slightly above 500 pounds.
In 2013 we were called by Ms Jade Robinson who, having moved into a one bedroom flat in Snowdonia in August 2001. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable flats in Snowdonia with an extended lease were valued about £280,000. The average amount of ground rent was £55 billed annually. The lease end date was on 3 June 2104. Given that there were 78 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Last Spring we were approach by Mrs Morgan Gunderson , who purchased a one bedroom flat in Snowdonia in May 2011. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in Snowdonia with a long lease were valued around £186,000. The average ground rent payable was £65 billed annually. The lease ended in 2084. Having 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of legals.