Deeside leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Deeside enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Deeside you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Deeside,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Deeside valuers.
During the course of the last few months Samuel, came very near to the 80-year mark with the lease on his one bedroom apartment in Deeside. Having bought his home twenty years ago, the length of the lease was of no significance. Thankfully, he noticed he needed to take steps soon on a lease extension. Samuel extended the lease at the eleventh hour last September. Samuel and the freeholder via the management company in the end settled on sum of £5,000 . If the lease had fallen to less than eighty years, the figure would have increased by at least £850.
Mrs Y Girard owned a garden flat in Deeside in January 2009. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Deeside with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed on 18 November 2093. Considering the 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.
Last month we were phoned by Mr and Mrs. F Cook , who took over the lease of a ground floor apartment in Deeside in April 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Deeside with an extended lease were valued about £201,200. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed in 2082. Given that there were 56 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.