Dinas Powys leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Dinas Powys residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dinas Powys you should investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Dinas Powys flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with undertake Dinas Powys 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 conveyancer we work with provide it.
Twenty four months ago Max, came seriously near to the eighty-year mark with the lease on his leasehold apartment in Dinas Powys. Having purchased his property two decades ago, the unexpired term was of little significance. by good luck, he recognised he needed to take steps soon on Extending the lease. Max was able to extend his lease just under the wire last April. Max and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had gone lower than 80 years, the sum would have increased by at least £1,075.
Dr Teddy Gray bought a ground floor apartment in Dinas Powys in July 2002. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Dinas Powys with 100 year plus lease were valued about £206,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed on 17 August 2081. Given that there were 56 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
In 2014 we were contacted by Mr and Mrs. C Taylor who, having owned a one bedroom apartment in Dinas Powys in August 2001. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Dinas Powys with a long lease were worth £300,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2101. Considering the 76 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.