The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Dolwyddelan can extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Dolwyddelan lease extension. Shelving that expense now simply escalates the premium you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Half a year ago Evan, started to get near to the 80-year mark with the lease on his ground floor flat in Dolwyddelan. In buying his flat 19 years ago, the unexpired term was of little interest. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Evan extended the lease just ahead of time in January. Evan and the freeholder ultimately agreed on an amount of £5,500 . If the lease had descended lower than 80 years, the sum would have gone up by at least £975.
Last Summer we were approach by Mrs Katherine François , who moved into a garden apartment in Dolwyddelan in October 1998. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Dolwyddelan with a long lease were valued about £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease terminated on 19 September 2097. Having 72 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of expenses.
In 2009 we were contacted by Mrs R Moore who, having moved into a purpose-built apartment in Dolwyddelan in November 2010. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar premises in Dolwyddelan with 100 year plus lease were valued about £233,200. The average amount of ground rent was £60 collected monthly. The lease lapsed on 2 April 2086. Taking into account 61 years remaining we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of expenses.