The nearer a domestic lease in Lisvane nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Lisvane will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Lisvane with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Lisvane,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lisvane valuers.
Last year Ethan, started to get near to the 80-year threshold with the lease on his garden flat in Lisvane. In buying his home two decades ago, the length of the lease was of little relevance. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Ethan extended the lease just under the wire in April. Ethan and the freeholder in the end agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have become more costly by at least £1,150.
Mr G Clark bought a studio flat in Lisvane in October 1995. The question was if we could approximate the premium would be to prolong the lease by an additional years. Identical residencies in Lisvane with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed annually. The lease ran out in 2104. Considering the 79 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Winter we were phoned by Mr Theo David , who was assigned a lease of a first floor flat in Lisvane in October 2007. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparative homes in Lisvane with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed in 2093. Given that there were 68 years left we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.