With a residential leasehold premises in Deganwy, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Residents in Deganwy with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant legislation the landlord can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Deganwy can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 dealing with Deganwy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her studio apartment in Deganwy, Phoebe started the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension completed in October 2006. The freeholder’s fees were restricted to below 450 pounds.
Mr and Mrs. M Thomas purchased a studio flat in Deganwy in March 2007. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative premises in Deganwy with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease ended in 2093. Given that there were 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.
In 2010 we were contacted by Mr and Mrs. F Bertrand who, having completed a studio flat in Deganwy in November 1998. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparative flats in Deganwy with an extended lease were worth £206,200. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out in 2082. Given that there were 56 years left we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.