Unfortunately that a Deganwy residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Deganwy property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Deganwy will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Deganwy,the lease extension solicitors 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 Deganwy valuers.
Harry owned a conversion flat in Deganwy being marketed with a lease of just over 59 years left. Harry informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Harry to invoke his statutory right. Harry obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2009 we were phoned by Mr George Díaz who, having completed a basement flat in Deganwy in July 2000. The dilemma was if we could estimate the price would be for a ninety year lease extension. Identical residencies in Deganwy with an extended lease were valued around £208,600. The average ground rent payable was £60 invoiced monthly. The lease elapsed on 4 September 2083. Considering the 57 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
In 2012 we were phoned by Mr and Mrs. H Bertrand who, having bought a ground floor apartment in Deganwy in June 1996. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative properties in Deganwy with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease end date was in 2103. Considering the 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.