It’s an underpublicised certainty that a Caernarfon residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Caernarfon property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of 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 Most leasehold owners in Caernarfon will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Caernarfon with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Caernarfon leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a high value flat in Caernarfon on the market with a lease of fraction over 72 years remaining. Jayden informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were called by Mr and Mrs. A Bell who, having took over the lease of a recently refurbished apartment in Caernarfon in March 2002. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable premises in Caernarfon with a long lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out on 2 April 2083. Having 58 years left we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Mr and Mrs. T Howard acquired a ground floor apartment in Caernarfon in August 1995. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar homes in Caernarfon with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed monthly. The lease end date was on 14 June 2103. Having 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.