Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Y Felinheli. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Y Felinheli have the legal entitlement to extend the lease for an additional ninety years under statute. Please give due consideration before putting off your Y Felinheli lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Y Felinheli can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Y Felinheli lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Zachary, started to get close to the eighty-year mark with the lease on his studio flat in Y Felinheli. In buying his flat two decades ago, the lease term was of little interest. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Zachary extended the lease just under the wire last January. Zachary and the freeholder subsequently agreed on sum of £5,500 . If the lease had fallen lower than eighty years, the price would have gone up by a minimum £975.
In 2011 we were contacted by Mr and Mrs. J Jones who, having was assigned a lease of a newly refurbished apartment in Y Felinheli in June 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Y Felinheli with an extended lease were worth £193,400. The average ground rent payable was £65 invoiced monthly. The lease terminated on 3 July 2085. Taking into account 59 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.
Mr and Mrs. J Harris was assigned a lease of a recently refurbished flat in Y Felinheli in September 2000. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative properties in Y Felinheli with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed in 2096. Given that there were 70 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.