Caersws leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Caersws will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Caersws 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 conveyancing solicitor we work with provide it.
Milo owned a 2 bedroom flat in Caersws being marketed with a lease of just over fifty eight years remaining. Milo informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. W Phillips who, having owned a basement apartment in Caersws in February 1996. The question was if we could approximate the price could be for a 90 year lease extension. Identical premises in Caersws with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out in 2100. Having 74 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
In 2009 we were phoned by Dr Leon Nelson who, having was assigned a lease of a purpose-built apartment in Caersws in February 1995. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar premises in Caersws with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed in 2089. Having 63 years left we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including expenses.