Dolwyddelan leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Dolwyddelan will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Dolwyddelan leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her purpose-built apartment in Dolwyddelan, Natasha commenced the lease extension process just as her lease was approaching the all-important 80-year deadline. The lease extension was concluded in May 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. E Allen moved into a ground floor flat in Dolwyddelan in November 2012. The question was if we could estimate the price would be for a 90 year lease extension. Comparable properties in Dolwyddelan with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 13 October 2084. Having 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.
In 2011 we were approached by Mrs Bethan Lewis who, having owned a studio apartment in Dolwyddelan in September 2005. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical premises in Dolwyddelan with 100 year plus lease were worth £205,000. The average ground rent payable was £50 collected annually. The lease elapsed on 13 November 2104. Given that there were 79 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.