It’s an underpublicised certainty that a Capel Curig residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Capel Curig property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Capel Curig will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| 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 |
The conveyancing solicitors that we work with undertake Capel Curig lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Elijah, started to get near to the eighty-year threshold with the lease on his studio flat in Capel Curig. Having purchased his property 19 years previously, the lease term was of minimal bearing. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Elijah arranged for a lease extension just under the wire in June. Elijah and the freeholder in the end settled on an amount of £6,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,100.
Last Spring we were contacted by Mr U Morris , who purchased a basement apartment in Capel Curig in September 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Capel Curig with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded on 28 September 2076. Taking into account 51 years outstanding we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including expenses.
Mr and Mrs. C Thomas purchased a one bedroom apartment in Capel Curig in January 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Capel Curig with an extended lease were valued around £210,600. The average ground rent payable was £45 invoiced per annum. The lease finished on 20 June 2087. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.