Corwen leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Corwen will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Corwen,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 experience and the close ties they enjoy with Corwen valuers.
Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Corwen, Lucy initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The legal work was concluded in January 2014. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Mr and Mrs. O Morris who, having was assigned a lease of a one bedroom flat in Corwen in May 2002. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar residencies in Corwen with an extended lease were valued about £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease ended on 10 July 2078. Considering the 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including professional charges.
In 2013 we were e-mailed by Mr N Davies who, having moved into a ground floor flat in Corwen in July 1996. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Corwen with an extended lease were worth £225,400. The average ground rent payable was £45 billed every twelve months. The lease finished in 2089. Given that there were 64 years remaining we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.