As the the remaining lease term of a Deeside residential lease diminished so does its value and therefore the value of your property. Where the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Deeside will qualify for this right; however a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Deeside with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with procure Deeside 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.
Last Winter Jake, came dangerously close to the 80-year mark with the lease on his one bedroom flat in Deeside. In buying his property 19 years ago, the length of the lease was of no relevance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Jake extended the lease at the eleventh hour in July. Jake and the landlord eventually agreed on the final figure of £5,000 . If the lease had descended to less than eighty years, the sum would have gone up by at least £1,025.
Last Summer we were e-mailed by Mrs K Gray , who took over the lease of a purpose-built flat in Deeside in November 2011. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar properties in Deeside with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish in 2100. Taking into account 74 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. U Hernández was assigned a lease of a one bedroom apartment in Deeside in July 2010. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Deeside with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 collected yearly. The lease elapsed in 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.