Dolgellau leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Dolgellau will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Dolgellau with in excess of 100 years remaining 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Dolgellau 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 Reuben, started to get near to the eighty-year mark with the lease on his studio flat in Dolgellau. In buying his property two decades ago, the unexpired term was of minimal importance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Reuben was able to extend his lease just under the wire in August. Reuben and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had fallen to less than 80 years, the amount would have increased by at least £1,150.
Last month we were contacted by Mr and Mrs. R Young , who was assigned a lease of a purpose-built apartment in Dolgellau in July 1998. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar flats in Dolgellau with an extended lease were valued about £220,400. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 17 October 2090. Given that there were 64 years outstanding we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.
Dr J Gray purchased a purpose-built apartment in Dolgellau in May 2002. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Dolgellau with an extended lease were valued around £270,000. The average ground rent payable was £55 billed yearly. The lease ended in 2101. Given that there were 75 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.