It’s an underpublicised truth that a Dolwyddelan residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Dolwyddelan property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Dolwyddelan will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Dolwyddelan,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dolwyddelan valuers.
In recent months Freddie, came critically close to the eighty-year threshold with the lease on his purpose- built apartment in Dolwyddelan. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Freddie was able to extend his lease just under the wire last July. Freddie and the freeholder via the management company in the end settled on the final figure of £6,000 . If the lease had fallen to less than 80 years, the amount would have gone up by a minimum £850.
In 2012 we were phoned by Dr Theo Watson who, having owned a garden apartment in Dolwyddelan in February 2002. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Dolwyddelan with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected quarterly. The lease ran out in 2099. Given that there were 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Mr and Mrs. C Mercier moved into a one bedroom flat in Dolwyddelan in June 1998. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Dolwyddelan with 100 year plus lease were valued around £240,600. The average amount of ground rent was £60 collected per annum. The lease concluded on 1 April 2088. Considering the 62 years outstanding we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.