Sychdyn residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sychdyn can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Sychdyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a conversion apartment in Sychdyn on the market with a lease of just over 72 years left. Jake informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last Summer we were phoned by Dr Max Edwards , who purchased a purpose-built apartment in Sychdyn in August 2000. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Similar flats in Sychdyn with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out in 2092. Given that there were 67 years outstanding we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus costs.
In 2012 we were e-mailed by Dr Ashleigh Anderson who, having bought a one bedroom flat in Sychdyn in February 2005. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Sychdyn with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out on 11 October 2103. Having 78 years unexpired we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.