Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Dyserth. Clearly, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Dyserth have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before putting off your Dyserth lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Dyserth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dyserth valuers.
Stanley owned a studio flat in Dyserth on the market with a lease of fraction over fifty eight years left. Stanley on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Summer we were phoned by Mrs I García , who took over the lease of a ground floor flat in Dyserth in April 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Dyserth with a long lease were valued about £181,600. The average ground rent payable was £55 collected annually. The lease elapsed on 4 May 2078. Given that there were 52 years left we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.
In 2009 we were e-mailed by Mr Aarav Patel who, having bought a studio apartment in Dyserth in January 1996. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative premises in Dyserth with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease ended in 2098. Given that there were 72 years left we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.