With a domestic leasehold premises in Dolwyddelan, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years remaining. Residents in Dolwyddelan with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant legislation the landlord can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Dolwyddelan can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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.
Following lengthy correspondence with the landlord of her studio flat in Dolwyddelan, Isobel initiated the lease extension process as the 80 year deadline was swiftly nearing. The transaction completed in November 2009. The freeholder’s fees were negotiated to less than 700 GBP.
Dr Jasmine Girard owned a one bedroom flat in Dolwyddelan in May 2007. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Dolwyddelan with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished on 21 January 2093. Having 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Mrs T Ricardo acquired a garden apartment in Dolwyddelan in September 2004. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Comparable premises in Dolwyddelan with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease finished in 2082. Given that there were 57 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.