Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sychdyn. Inevitably, the period of lease left reduces over time. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Sychdyn have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due attention before putting off your Sychdyn lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold properties in Sychdyn with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Sychdyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted discussions with the landlord of her two bedroom apartment in Sychdyn, Catherine started the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension was concluded in June 2015. The landlord’s fees were negotiated to a tad over 500 GBP.
In 2013 we were approached by Mr and Mrs. A Wilson who, having took over the lease of a ground floor flat in Sychdyn in August 2008. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Sychdyn with an extended lease were valued about £183,600. The average ground rent payable was £65 collected annually. The lease expired in 2083. Given that there were 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Ms C Clarke completed a purpose-built apartment in Sychdyn in March 1999. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Sychdyn with a long lease were worth £245,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish on 12 June 2094. Having 68 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.