The re-sale value of a leasehold property in St Asaph depends on how many years the lease has remaining. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year mark. Statute enables St Asaph qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in St Asaph,the lease extension lawyers 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 St Asaph valuers.
Subsequent to protracted discussions with the landlord of her first floor flat in St Asaph, Chantelle commenced the lease extension process as the eighty year mark was fast coming. The legal work was concluded in August 2005. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were phoned by Dr S Evans , who bought a first floor apartment in St Asaph in June 2006. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative homes in St Asaph with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished on 11 January 2102. Given that there were 77 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Mr F Scott bought a basement flat in St Asaph in May 2004. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in St Asaph with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease came to a finish in 2091. Considering the 66 years outstanding we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.