Unfortunately that a Trearddur Bay residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Trearddur Bay property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most leasehold owners in Trearddur Bay will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Trearddur Bay with in excess of 100 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 property. In such circumstances there is often little to be gained by purchasing 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. |
| 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Trearddur Bay,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trearddur Bay valuers.
Following lengthy negotiations with the freeholder of her first floor apartment in Trearddur Bay, Erin started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The lease extension was concluded in June 2011. The landlord’s fees were restricted to about 550 GBP.
In 2013 we were approached by Mr and Mrs. B Taylor who, having completed a first floor apartment in Trearddur Bay in June 2001. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical flats in Trearddur Bay with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 collected monthly. The lease ran out on 6 January 2105. Having 79 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Winter we were called by Ms B Brown , who bought a one bedroom apartment in Trearddur Bay in September 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Trearddur Bay with 100 year plus lease were worth £275,000. The average ground rent payable was £65 collected yearly. The lease finished in 2094. Given that there were 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.