For those whose Dinas Powys flat is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Dinas Powys with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 freeholder in Dinas Powys,the lease extension lawyers 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 Dinas Powys valuers.
After protracted discussions with the landlord of her one bedroom apartment in Dinas Powys, Natasha started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work completed in February 2005. The landlord’s fees were negotiated to about 500 GBP.
Last August we were called by Dr Arthur Morris , who took over the lease of a purpose-built flat in Dinas Powys in May 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar premises in Dinas Powys with 100 year plus lease were valued about £243,000. The average amount of ground rent was £65 billed every twelve months. The lease finished in 2088. Having 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.
Last Spring we were e-mailed by Mr Elijah Gunderson , who bought a first floor flat in Dinas Powys in October 2005. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in Dinas Powys with a long lease were valued around £181,600. The average amount of ground rent was £55 invoiced yearly. The lease terminated in 2077. Taking into account 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.