With a long leasehold premises in Connahs Quay, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Connahs Quay with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the relevant legislation the landlord can calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Connahs Quay with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Connahs Quay,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Connahs Quay valuers.
During the course of the last few months Theo, came precariously close to the 80-year mark with the lease on his one bedroom apartment in Connahs Quay. In buying his home two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Theo was able to extend his lease at the eleventh hour in April. Theo and the landlord ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £850.
In 2010 we were e-mailed by Mrs O Ali who, having took over the lease of a purpose-built apartment in Connahs Quay in August 2002. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Connahs Quay with a long lease were valued about £189,000. The average ground rent payable was £55 billed quarterly. The lease elapsed on 24 April 2079. Taking into account 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
Last year we were e-mailed by Dr G Gunderson , who took over the lease of a basement flat in Connahs Quay in July 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Connahs Quay with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out in 2099. Taking into account 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.