Chances are that where you own a flat in Trearddur Bay you actually own a long leasehold interest over your property
Leasehold premises in Trearddur Bay with over 100 years left on the lease are often 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 freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Trearddur Bay leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a conversion flat in Trearddur Bay being marketed with a lease of just over sixty years remaining. Reuben informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Summer we were phoned by Dr Jamie Cook , who acquired a purpose-built apartment in Trearddur Bay in March 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Trearddur Bay with an extended lease were valued about £171,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired in 2076. Taking into account 50 years outstanding we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus fees.
In 2013 we were phoned by Mr and Mrs. O Ali who, having took over the lease of a ground floor apartment in Trearddur Bay in March 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar homes in Trearddur Bay with a long lease were valued about £280,000. The average ground rent payable was £45 invoiced per annum. The lease termination date was on 7 June 2096. Given that there were 70 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.