The closer a residential lease in Dolwyddelan nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Dolwyddelan will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Dolwyddelan can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Dolwyddelan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Rory owned a studio flat in Dolwyddelan on the market with a lease of fraction over sixty years left. Rory informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mrs Ellen Patel moved into a one bedroom apartment in Dolwyddelan in September 2004. The question was if we could estimate the price would likely be to extend the lease by ninety years. Similar flats in Dolwyddelan with a long lease were valued about £250,400. The mid-range ground rent payable was £65 billed quarterly. The lease terminated in 2089. Given that there were 64 years unexpired we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus legals.
In 2012 we were phoned by Dr James Baker who, having bought a newly refurbished apartment in Dolwyddelan in September 1999. The question was if we could estimate the price could be for a ninety year lease extension. Comparable homes in Dolwyddelan with an extended lease were in the region of £189,000. The average ground rent payable was £55 billed quarterly. The lease termination date was on 27 January 2078. Given that there were 53 years left we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.