Bodelwyddan leases on residential properties are gradually losing 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 allowing qualifying Bodelwyddan residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bodelwyddan you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Bodelwyddan with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure Bodelwyddan lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Christmas Kai, started to get near to the eighty-year mark with the lease on his first floor flat in Bodelwyddan. Having bought his property two decades ago, the length of the lease was of minimal significance. Luckily, he noticed he needed to take steps soon on a lease extension. Kai arranged for a lease extension just ahead of time in August. Kai and the landlord ultimately agreed on the final figure of £5,000 . If the lease had slipped lower than eighty years, the price would have gone up by a minimum £1,050.
Last Summer we were phoned by Mrs F Baker , who was assigned a lease of a one bedroom apartment in Bodelwyddan in June 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable flats in Bodelwyddan with a long lease were valued around £183,600. The average ground rent payable was £65 collected monthly. The lease expiry date was in 2083. Taking into account 57 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
In 2010 we were called by Mrs Y Phillips who, having moved into a purpose-built flat in Bodelwyddan in July 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Bodelwyddan with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 collected monthly. The lease concluded on 8 November 2094. Considering the 68 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.