When it comes to domestic leasehold property in Deeside, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Deeside with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the current legislation the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Deeside with in excess of 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Deeside,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Deeside valuers.
Last year Jackson, came seriously near to the eighty-year threshold with the lease on his studio flat in Deeside. Having bought his home twenty years previously, the lease term was of no importance. As luck would have it, he realised he needed to take action soon on Extending the lease. Jackson extended the lease just in the nick of time last March. Jackson and the freeholder in the end settled on the final figure of £5,500 . If he had missed the deadline, the sum would have escalated by a minimum £1,000.
Mr and Mrs. A Mercier purchased a basement apartment in Deeside in November 2008. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Similar flats in Deeside with an extended lease were worth £230,800. The mid-range ground rent payable was £60 billed yearly. The lease expiry date was on 7 June 2084. Taking into account 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of costs.
Dr Kai Miller bought a garden flat in Deeside in June 2003. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar properties in Deeside with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2104. Taking into account 80 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.