The closer a residential lease in Caersws nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Caersws will meet the qualifying criteria; however a lawyer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
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.
Off the back of lengthy discussions with the landlord of her first floor apartment in Caersws, Abigail started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was concluded in October 2015. The landlord’s charges were kept to an absolute minimum.
Dr Melissa Lee acquired a studio flat in Caersws in October 2003. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar properties in Caersws with an extended lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended in 2095. Having 69 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2012 we were e-mailed by Mrs I Clarke who, having moved into a recently refurbished flat in Caersws in July 2002. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar homes in Caersws with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease came to a finish in 2084. Given that there were 58 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.