Unfortunately that a Amlwch residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Amlwch property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Amlwch will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Amlwch can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 in-depth market knowledge procuring Amlwch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas was the the leasehold owner of a conversion flat in Amlwch on the market with a lease of a little over fifty eight years remaining. Thomas on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2009 we were e-mailed by Mr Oscar Davis who, having owned a basement flat in Amlwch in October 2007. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in Amlwch with a long lease were worth £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2086. Considering the 61 years left we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.
In 2010 we were called by Mr and Mrs. I Rodríguez who, having bought a first floor apartment in Amlwch in October 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Amlwch with 100 year plus lease were worth £171,800. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2075. Having 50 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.