Amlwch leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Amlwch will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
Engaging our service gives you better control over the value of your Amlwch leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold proprietor of a conversion apartment in Amlwch being sold with a lease of a few days over 72 years left. Jasper informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Summer we were phoned by Mr Y Parker , who owned a ground floor flat in Amlwch in August 2004. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Amlwch with an extended lease were in the region of £275,000. The average amount of ground rent was £65 collected annually. The lease ended on 15 April 2093. Taking into account 68 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Last Christmas we were phoned by Ms Amy Gunderson , who moved into a first floor apartment in Amlwch in July 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar homes in Amlwch with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected quarterly. The lease elapsed on 27 October 2082. Considering the 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.