Caersws 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 becomes more expensive. It is the case that most Caersws tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Caersws you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Caersws flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
Leasehold premises in Caersws 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you increased control over the value of your Caersws leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her one bedroom flat in Caersws, Victoria started the lease extension process as the 80 year mark was quickly advancing. The legal work was finalised in September 2005. The freeholder’s fees were negotiated to under 500 pounds.
Mrs Y Lefebvre acquired a purpose-built apartment in Caersws in April 2006. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical premises in Caersws with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 billed yearly. The lease terminated in 2088. Considering the 62 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.
In 2014 we were called by Mr L Smith who, having moved into a first floor flat in Caersws in May 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Caersws with an extended lease were worth £174,200. The average ground rent payable was £55 collected monthly. The lease came to a finish on 24 November 2077. Considering the 51 years left we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.