The only way is down when it comes to Caerwys lease terms. Caerwys flats that have a residual term lower than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Caerwys with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
Lease extensions in Caerwys can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Caerwys lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a studio flat in Caerwys being marketed with a lease of fraction over 61 years left. Stanley informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last month we were contacted by Mr and Mrs. V Harris , who moved into a purpose-built flat in Caerwys in January 2010. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical properties in Caerwys with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2104. Having 79 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 not including professional charges.
In 2014 we were contacted by Ms Chloe Lee who, having took over the lease of a one bedroom apartment in Caerwys in October 2007. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable residencies in Caerwys with a long lease were in the region of £270,000. The average ground rent payable was £65 billed monthly. The lease termination date was in 2093. Given that there were 68 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.