When it comes to residential leasehold property in Sychdyn, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Sychdyn with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once the lease term has under eighty years remaining, under the current legislation the landlord can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Sychdyn,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sychdyn valuers.
In the wake of 9 months of unsuccessful discussions with the freeholder of her garden flat in Sychdyn, Ellen started the lease extension process as the 80 year mark was fast nearing. The transaction completed in February 2014. The landlord’s costs were kept to an absolute minimum.
Dr Emily Rose took over the lease of a purpose-built apartment in Sychdyn in February 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative premises in Sychdyn with a long lease were worth £168,800. The average amount of ground rent was £60 billed every twelve months. The lease expired on 3 March 2080. Having 55 years left we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
Mr Jasper André was assigned a lease of a studio flat in Sychdyn in August 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Sychdyn with an extended lease were worth £235,200. The average ground rent payable was £45 billed annually. The lease terminated on 15 May 2091. Taking into account 66 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.