Y Felinheli leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Y Felinheli will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Y Felinheli with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you increased control over the value of your Y Felinheli leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Liam, started to get near to the 80-year mark with the lease on his basement flat in Y Felinheli. Having bought his property 18 years ago, the unexpired term was of little relevance. by good luck, he noticed he needed to take action soon on a lease extension. Liam extended the lease just in the nick of time in May. Liam and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had fallen below 80 years, the figure would have gone up by at least £1,100.
Mr and Mrs. F Smith owned a ground floor flat in Y Felinheli in April 2011. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Y Felinheli with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease expiry date was on 11 July 2101. Given that there were 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last year we were phoned by Dr Evan Bell , who acquired a basement apartment in Y Felinheli in March 2010. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Y Felinheli with a long lease were worth £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out in 2081. Having 56 years outstanding we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.