Deganwy leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Deganwy will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers 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 lawyer we work with provide it.
Leon was the the leasehold owner of a studio flat in Deganwy on the market with a lease of fraction over sixty years outstanding. Leon informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were called by Mr G Martinez , who took over the lease of a ground floor flat in Deganwy in January 1999. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable properties in Deganwy with a long lease were worth £198,800. The mid-range amount of ground rent was £55 billed annually. The lease terminated in 2081. Considering the 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including fees.
In 2010 we were contacted by Mr and Mrs. T Khan who, having purchased a one bedroom apartment in Deganwy in October 2000. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Deganwy with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2101. Having 75 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.