The value of Caerwys leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than eighty years
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Caerwys,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caerwys valuers.
18 months ago Joseph, came perilously near to the eighty-year mark with the lease on his leasehold flat in Caerwys. In buying his property 19 years ago, the lease term was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Joseph arranged for a lease extension just under the wire last August. Joseph and the freeholder via the management company in the end settled on sum of £5,000 . If the lease had gone to less than 80 years, the price would have become more costly by at least £1,050.
Dr G Morgan purchased a one bedroom apartment in Caerwys in January 2012. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative premises in Caerwys with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced annually. The lease ran out in 2095. Having 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
In 2013 we were e-mailed by Mrs Olivia Rogers who, having completed a garden apartment in Caerwys in January 2004. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable premises in Caerwys with a long lease were in the region of £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2084. Taking into account 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.