Chances are that if you own a flat in Caerwys you actually own a long leasehold interest over your property
Leasehold residencies in Caerwys with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Caerwys can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 a wealth of experience 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.
Nathan was the the leasehold proprietor of a conversion flat in Caerwys on the market with a lease of a few days over fifty eight years left. Nathan on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Dr T Clark purchased a newly refurbished flat in Caerwys in April 2007. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar properties in Caerwys with 100 year plus lease were valued around £166,800. The average ground rent payable was £50 billed every twelve months. The lease expired in 2076. Given that there were 50 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.
In 2009 we were approached by Dr Muhammad Miller who, having completed a basement apartment in Caerwys in April 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Caerwys with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded on 28 March 2096. Taking into account 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.