On the balance of probabilities where you own a flat in Dolgellau you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Dolgellau,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dolgellau valuers.
Two years ago Nathaniel, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Dolgellau. In buying his home two decades ago, the length of the lease was of minimal interest. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Nathaniel was able to extend his lease just in the nick of time last April. Nathaniel and the freeholder via the management company subsequently agreed on sum of £5,000 . If the lease had dropped below 80 years, the figure would have gone up by at least £900.
Last year we were phoned by Mr and Mrs. P Vincent , who was assigned a lease of a purpose-built flat in Dolgellau in July 2007. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Dolgellau with an extended lease were valued around £210,600. The average ground rent payable was £45 billed quarterly. The lease end date was on 3 March 2087. Considering the 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.
Last Winter we were approach by Mr Gabriel Wright , who owned a studio flat in Dolgellau in March 2010. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical properties in Dolgellau with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2098. Having 73 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.