The closer a residential lease in Dolwyddelan gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Dolwyddelan will meet the qualifying criteria; however a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless 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.
Trailing unsuccessful discussions with the freeholder of her ground floor flat in Dolwyddelan, Chelsea initiated the lease extension process just as the lease was coming close to the crucial 80-year mark. The transaction was concluded in April 2006. The freeholder’s fees were negotiated to a tad over 500 pounds.
In 2014 we were phoned by Ms C Bell who, having purchased a recently refurbished flat in Dolwyddelan in May 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Dolwyddelan with an extended lease were valued around £205,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2103. Considering the 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Ms Tia González was assigned a lease of a studio apartment in Dolwyddelan in July 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative properties in Dolwyddelan with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced annually. The lease concluded in 2092. Given that there were 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.