On the balance of probabilities if you own a flat in Dolwyddelan you actually own a long leasehold interest over your property
Leasehold residencies in Dolwyddelan with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Dolwyddelan can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Dolwyddelan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry was the the leasehold proprietor of a studio apartment in Dolwyddelan being sold with a lease of just over 59 years remaining. Harry informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.
Last Spring we were approach by Mr and Mrs. H Lewis , who purchased a purpose-built flat in Dolwyddelan in July 1998. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Dolwyddelan with an extended lease were valued around £171,800. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish on 11 July 2076. Considering the 50 years remaining we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
Dr Riley Martin moved into a one bedroom apartment in Dolwyddelan in November 2009. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Dolwyddelan with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 billed yearly. The lease finished on 4 July 2096. Taking into account 70 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.