Unfortunately that a Deeside residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Deeside property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Deeside will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Deeside with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Deeside can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with Deeside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Reuben, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Deeside. Having purchased his flat 18 years previously, the unexpired term was of little concern. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Reuben was able to extend his lease just ahead of time in January. Reuben and the freeholder subsequently agreed on an amount of £6,000 . If the lease had dropped below eighty years, the premium would have escalated by at least £1,100.
Last Christmas we were approach by Mr and Mrs. D Petit , who bought a purpose-built apartment in Deeside in July 1996. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in Deeside with an extended lease were valued around £235,600. The average ground rent payable was £60 collected every twelve months. The lease lapsed in 2087. Considering the 62 years left we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.
Dr Omar Bell was assigned a lease of a studio flat in Deeside in July 1995. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar properties in Deeside with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed annually. The lease elapsed in 2076. Having 51 years outstanding we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.