When it comes to long leasehold property in Dolwyddelan, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Dolwyddelan with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has fewer than eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Dolwyddelan with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with procure Dolwyddelan 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 conveyancing solicitor we work with provide it.
After lengthy negotiations with the freeholder of her garden apartment in Dolwyddelan, Ellie started the lease extension process as the 80 year mark was quickly nearing. The transaction was concluded in October 2005. The landlord’s fees were negotiated to less than five hundred GBP.
Ms Grace Roux took over the lease of a ground floor flat in Dolwyddelan in April 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Dolwyddelan with an extended lease were worth £267,600. The average amount of ground rent was £65 invoiced per annum. The lease finished in 2093. Given that there were 67 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of costs.
Last Christmas we were contacted by Dr Evan Lefebvre , who acquired a purpose-built flat in Dolwyddelan in April 2001. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Dolwyddelan with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 24 June 2082. Considering the 56 years left we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus costs.