Connahs Quay leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Connahs Quay enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Connahs Quay you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Connahs Quay with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 procure Connahs Quay 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.
In recent months Kyle, came critically close to the eighty-year mark with the lease on his leasehold apartment in Connahs Quay. Having purchased his property two decades ago, the length of the lease was of little concern. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Kyle extended the lease just under the wire in July. Kyle and the landlord ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,100.
In 2010 we were e-mailed by Dr R Murphy who, having acquired a purpose-built apartment in Connahs Quay in August 2008. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative premises in Connahs Quay with a long lease were worth £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded on 9 April 2092. Having 67 years unexpired we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus legals.
In 2014 we were phoned by Dr Millie Smith who, having was assigned a lease of a first floor flat in Connahs Quay in July 2006. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable flats in Connahs Quay with an extended lease were in the region of £206,200. The average ground rent payable was £55 billed yearly. The lease elapsed on 6 January 2081. Given that there were 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.