The market value of Dyserth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than 80 years
Leasehold premises in Dyserth with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Dyserth can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Dyserth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Cameron, came dangerously near to the eighty-year mark with the lease on his first floor flat in Dyserth. Having purchased his property 18 years ago, the unexpired term was of minimal bearing. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Cameron was able to extend his lease at the eleventh hour in September. Cameron and the landlord in the end agreed on a premium of £6,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,125.
In 2013 we were called by Mr and Mrs. Y Bell who, having completed a one bedroom apartment in Dyserth in January 2000. The question was if we could approximate the premium could be for a 90 year lease extension. Similar flats in Dyserth with an extended lease were valued about £240,600. The average amount of ground rent was £65 billed per annum. The lease finished on 7 November 2088. Taking into account 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.
In 2011 we were approached by Mr and Mrs. F Gray who, having was assigned a lease of a first floor flat in Dyserth in September 2002. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Dyserth with an extended lease were valued about £174,200. The mid-range ground rent payable was £55 billed quarterly. The lease ran out on 20 June 2077. Given that there were 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.