Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Deganwy. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Deganwy have the right to extend the lease for an additional ninety years in accordance with legislation. Please give due deliberation before delaying your Deganwy lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Deganwy with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Deganwy leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold owner of a studio apartment in Deganwy being sold with a lease of a little over 72 years unexpired. Henry informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2011 we were contacted by Mr and Mrs. P Richardson who, having was assigned a lease of a one bedroom apartment in Deganwy in November 2004. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparative properties in Deganwy with an extended lease were valued around £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease expiry date was in 2078. Taking into account 52 years outstanding we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.
Mr L Thomas was assigned a lease of a garden apartment in Deganwy in October 2002. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative properties in Deganwy with an extended lease were in the region of £290,000. The average amount of ground rent was £45 collected quarterly. The lease expired in 2098. Having 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.