Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Symonds Yat. Inevitably, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Symonds Yat have the right to extend the lease for a further ninety years in accordance with legislation. Do give careful attention before putting off your Symonds Yat lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold properties in Symonds Yat with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Symonds Yat leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Tommy, came precariously near to the eighty-year threshold with the lease on his garden flat in Symonds Yat. In buying his home 19 years previously, the unexpired term was of no concern. As luck would have it, he realised he needed to take steps soon on Extending the lease. Tommy extended the lease at the eleventh hour in July. Tommy and the freeholder via the managing agents in the end agreed on sum of £5,000 . If the lease had fallen below eighty years, the premium would have gone up by a minimum £875.
In 2012 we were contacted by Mr and Mrs. H Campbell who, having completed a first floor apartment in Symonds Yat in May 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Symonds Yat with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish on 1 May 2095. Having 69 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
In 2012 we were called by Mrs Francesca Hall who, having owned a recently refurbished apartment in Symonds Yat in June 2006. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Symonds Yat with an extended lease were valued around £216,000. The average ground rent payable was £60 invoiced per annum. The lease expired in 2084. Considering the 58 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.