The value of Dolgellau leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than eighty years
Leasehold premises in Dolgellau with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you better control over the value of your Dolgellau leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the landlord of her ground floor flat in Dolgellau, Katherine started the lease extension process as the 80 year deadline was rapidly nearing. The transaction was concluded in March 2006. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mr E Walker who, having acquired a recently refurbished apartment in Dolgellau in March 2002. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar residencies in Dolgellau with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 collected quarterly. The lease lapsed on 26 September 2087. Given that there were 61 years remaining we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
Mr and Mrs. K Girard moved into a ground floor apartment in Dolgellau in February 2003. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar premises in Dolgellau with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 18 September 2098. Given that there were 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.