Amlwch leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Amlwch residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Amlwch you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Amlwch with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Amlwch,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Amlwch valuers.
Following unsuccessful correspondence with the freeholder of her one bedroom apartment in Amlwch, Erin commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work was finalised in May 2008. The landlord’s fees were negotiated to under 600 GBP.
In 2010 we were contacted by Mrs Isabelle Lefebvre who, having bought a first floor flat in Amlwch in June 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar residencies in Amlwch with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 collected annually. The lease lapsed in 2105. Considering the 80 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Ms Rosie Scott moved into a one bedroom flat in Amlwch in April 2011. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Amlwch with 100 year plus lease were valued about £275,000. The average ground rent payable was £45 invoiced per annum. The lease finished in 2094. Considering the 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.