Caerwys leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Caerwys will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Caerwys with over 100 years left 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander |
Irrespective of whether you are a tenant or a landlord in Caerwys,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caerwys valuers.
George owned a conversion apartment in Caerwys being marketed with a lease of fraction over sixty years outstanding. George on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2011 we were phoned by Mr J Turner who, having bought a basement flat in Caerwys in July 1997. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable residencies in Caerwys with a long lease were in the region of £295,000. The average amount of ground rent was £45 invoiced monthly. The lease ended in 2100. Having 74 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
In 2011 we were approached by Mr and Mrs. J Patel who, having acquired a basement flat in Caerwys in August 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Caerwys with a long lease were valued around £243,000. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 11 February 2089. Taking into account 63 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of legals.