It’s a harsh certainty that a Dolwyddelan residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Dolwyddelan property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Dolwyddelan will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Dolwyddelan with more than one hundred 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| TSB |
Irrespective of whether you are a tenant or a landlord in Dolwyddelan,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dolwyddelan valuers.
Harry owned a conversion apartment in Dolwyddelan being sold with a lease of fraction over 72 years remaining. Harry on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mrs Zoe Miller owned a ground floor apartment in Dolwyddelan in January 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar homes in Dolwyddelan with 100 year plus lease were in the region of £265,200. The mid-range amount of ground rent was £65 billed per annum. The lease ran out in 2092. Given that there were 66 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
Last Autumn we were approach by Mr and Mrs. L Clark , who took over the lease of a basement flat in Dolwyddelan in May 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Dolwyddelan with an extended lease were in the region of £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed on 23 May 2081. Taking into account 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of expenses.