The closer a domestic lease in Deganwy nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Deganwy will meet the qualifying criteria; that being said a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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.
Half a year ago Aiden, came perilously near to the 80-year mark with the lease on his basement flat in Deganwy. Having bought his home twenty years ago, the unexpired term was of minimal interest. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Aiden was able to extend his lease just in the nick of time in April. Aiden and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had slid below 80 years, the sum would have gone up by a minimum £975.
In 2011 we were contacted by Mr and Mrs. R Lefebvre who, having took over the lease of a studio apartment in Deganwy in February 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical homes in Deganwy with an extended lease were valued around £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease ended on 15 March 2091. Considering the 66 years left we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus expenses.
Last year we were phoned by Mr Evan Walker , who bought a purpose-built apartment in Deganwy in October 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Similar properties in Deganwy with a long lease were worth £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease end date was in 2080. Given that there were 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.