Dolwyddelan leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Dolwyddelan will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Charlie owned a studio flat in Dolwyddelan being marketed with a lease of a few days over 72 years outstanding. Charlie on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Charlie to invoke his statutory right. Charlie procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Last Summer we were contacted by Mr and Mrs. B Davies , who was assigned a lease of a first floor flat in Dolwyddelan in February 2010. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar properties in Dolwyddelan with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed per annum. The lease lapsed in 2088. Given that there were 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Last Christmas we were phoned by Mr and Mrs. W Jackson , who completed a basement flat in Dolwyddelan in July 2011. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Dolwyddelan with an extended lease were in the region of £181,600. The average ground rent payable was £55 collected yearly. The lease elapsed on 27 April 2077. Given that there were 52 years as a residual term we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including professional charges.