As the the remaining lease term of a Capel Curig domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Capel Curig will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Capel Curig can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 procuring Capel Curig lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her purpose-built flat in Capel Curig, Molly started the lease extension process as the 80 year threshold was quickly coming. The lease extension was concluded in September 2009. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Ms Melissa Hill , who bought a one bedroom apartment in Capel Curig in August 2011. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Capel Curig with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded on 11 September 2079. Taking into account 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including professional charges.
Last year we were approach by Dr Francesca Leroy , who purchased a garden flat in Capel Curig in January 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Capel Curig with a long lease were valued around £220,400. The mid-range ground rent payable was £45 collected yearly. The lease elapsed in 2090. Given that there were 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus costs.