As the the remaining lease term of a Cilfynydd domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years remaining then this decrease may be fractional that being said 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 be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Cilfynydd will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Cilfynydd leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jason, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Cilfynydd. In buying his property two decades ago, the unexpired term was of little relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jason extended the lease just in the nick of time in August. Jason and the landlord ultimately settled on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £1,000.
Mrs Mia Simon took over the lease of a first floor flat in Cilfynydd in March 2001. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical residencies in Cilfynydd with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed on 6 May 2097. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were contacted by Dr Kayleigh Collins who, having acquired a first floor flat in Cilfynydd in March 1999. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Cilfynydd with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out on 11 August 2077. Considering the 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of expenses.