The re-sale value of a leasehold property in Y Felinheli depends on how many years the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year mark. Statute enables Y Felinheli qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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; |
| 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 75 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 |
The conveyancers that we work with procure Y Felinheli 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 conveyancing solicitor we work with provide it.
After lengthy discussions with the freeholder of her garden apartment in Y Felinheli, Holly commenced the lease extension process just as her lease was approaching the critical 80-year mark. The transaction was concluded in October 2013. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. M Bell took over the lease of a first floor apartment in Y Felinheli in November 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable residencies in Y Felinheli with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2104. Having 78 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last Spring we were phoned by Mr and Mrs. S García , who bought a ground floor apartment in Y Felinheli in January 2002. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Y Felinheli with 100 year plus lease were valued about £186,000. The mid-range amount of ground rent was £65 collected annually. The lease end date was in 2084. Considering the 58 years outstanding we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.