Dyserth leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Dyserth will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Dyserth with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Dyserth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold owner of a conversion apartment in Dyserth being marketed with a lease of a little over 72 years remaining. Cameron on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Dr Leon Clark acquired a one bedroom flat in Dyserth in January 2004. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar premises in Dyserth with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired on 21 January 2101. Having 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
In 2013 we were e-mailed by Ms Ellen Scott who, having moved into a studio apartment in Dyserth in July 2004. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative homes in Dyserth with an extended lease were worth £250,400. The average ground rent payable was £65 collected annually. The lease expired in 2090. Having 64 years remaining we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus expenses.