As the length of the unexpired term of a Dolgellau residential lease decreases so does its value and therefore the value of your property. If the residual term has, over one hundred years remaining then this decrease may be negligible 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 termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Dolgellau will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In certain 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 Dolgellau with over 100 years outstanding 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Dolgellau,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 Dolgellau valuers.
Finn owned a high value apartment in Dolgellau being sold with a lease of fraction over sixty years left. Finn on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Finn to exercise his statutory right. Finn obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were phoned by Mrs Victoria Lewis , who purchased a first floor apartment in Dolgellau in January 2000. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable properties in Dolgellau with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease came to a finish in 2075. Given that there were 50 years outstanding we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.
Mr Finn Cooper moved into a purpose-built flat in Dolgellau in October 2012. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar homes in Dolgellau with an extended lease were worth £203,200. The mid-range ground rent payable was £65 invoiced monthly. The lease expired on 20 July 2086. Considering the 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.