The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Trearddur Bay may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Trearddur Bay lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
The conveyancing solicitors that we work with handle Trearddur Bay 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.
During the course of the last few months Ollie, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Trearddur Bay. In buying his flat 18 years previously, the length of the lease was of no significance. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Ollie arranged for a lease extension just under the wire in August. Ollie and the landlord in the end settled on an amount of £5,000 . If the lease had gone to less than eighty years, the price would have increased by at least £1,000.
Last Autumn we were called by Mr and Mrs. C Girard , who acquired a purpose-built apartment in Trearddur Bay in March 1997. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Trearddur Bay with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 9 January 2092. Having 67 years remaining we estimated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of fees.
Mrs E Rogers was assigned a lease of a one bedroom apartment in Trearddur Bay in May 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Trearddur Bay with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 8 March 2081. Taking into account 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.