It’s a harsh truth that a Amlwch residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Amlwch property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Amlwch will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you better control over the value of your Amlwch leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Milo owned a conversion flat in Amlwch on the market with a lease of just over sixty years outstanding. Milo informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured an acceptable deal informally and sell the property.
Last Summer we were e-mailed by Dr L Morgan , who was assigned a lease of a purpose-built flat in Amlwch in January 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative premises in Amlwch with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease finished on 20 March 2078. Taking into account 52 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.
Last month we were approach by Dr Rory Torres , who took over the lease of a one bedroom apartment in Amlwch in July 1995. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparable homes in Amlwch with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced annually. The lease concluded on 11 March 2098. Having 72 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.