As the the remaining lease term of a Deganwy domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Deganwy will qualify for this right; however a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Deganwy lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Jake, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Deganwy. Having bought his flat 18 years ago, the unexpired term was of no concern. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Jake was able to extend his lease at the eleventh hour last August. Jake and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £950.
Last Summer we were approach by Mrs Georgia Dupont , who took over the lease of a studio flat in Deganwy in September 2005. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Deganwy with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease elapsed in 2103. Given that there were 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
Dr Ali Rodríguez was assigned a lease of a ground floor flat in Deganwy in February 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative flats in Deganwy with an extended lease were worth £267,600. The average ground rent payable was £65 billed per annum. The lease terminated in 2092. Having 67 years left we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including fees.