Deganwy leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Deganwy enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Deganwy you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Deganwy can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 procuring Deganwy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Rory owned a 2 bedroom flat in Deganwy on the market with a lease of a few days over 72 years unexpired. Rory on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2014 we were e-mailed by Mr and Mrs. C David who, having bought a newly refurbished flat in Deganwy in January 2011. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Deganwy with an extended lease were valued around £257,800. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2091. Taking into account 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
Last June we were called by Mr and Mrs. W Peterson , who took over the lease of a ground floor apartment in Deganwy in September 2006. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Deganwy with an extended lease were in the region of £191,400. The average ground rent payable was £55 invoiced annually. The lease concluded in 2080. Considering the 54 years left we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including legals.