The only way is down when it comes to Dolwyddelan lease terms. Dolwyddelan flats that have a lease term fewer than eighty years will de-escalate in market price even faster, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancer we work with provide it.
Jude was the the leasehold proprietor of a 2 bedroom apartment in Dolwyddelan being marketed with a lease of just over 59 years outstanding. Jude informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude obtained expert advice and secured satisfactory resolution informally and sell the property.
Last Autumn we were contacted by Ms L Lee , who took over the lease of a one bedroom flat in Dolwyddelan in July 2000. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical flats in Dolwyddelan with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish on 1 February 2085. Considering the 59 years unexpired we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including costs.
Mr and Mrs. N Morris moved into a basement flat in Dolwyddelan in June 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Dolwyddelan with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 invoiced annually. The lease end date was in 2105. Taking into account 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.