It’s an underpublicised certainty that a Caerwys residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Caerwys property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Caerwys will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Caerwys with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Caerwys leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the landlord of her first floor apartment in Caerwys, Stephanie started the lease extension process as the 80 year mark was swiftly coming. The lease extension was finalised in February 2008. The landlord’s fees were negotiated to less than 550 GBP.
Mr and Mrs. V Ramírez purchased a first floor flat in Caerwys in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar properties in Caerwys with 100 year plus lease were valued about £235,600. The average amount of ground rent was £60 billed per annum. The lease concluded in 2088. Taking into account 62 years outstanding we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.
Last August we were phoned by Dr G Ricardo , who acquired a one bedroom apartment in Caerwys in June 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Caerwys with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 5 November 2077. Having 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.