The closer a residential lease in Dolwyddelan nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Dolwyddelan will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Dolwyddelan,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dolwyddelan valuers.
In 2014 Samuel, came precariously near to the eighty-year mark with the lease on his two bedroom flat in Dolwyddelan. Having bought his property 19 years previously, the length of the lease was of no concern. Luckily, he realised he needed to take action soon on a lease extension. Samuel extended the lease just ahead of time last May. Samuel and the landlord in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £1,025.
In 2013 we were approached by Ms H Mason who, having completed a basement apartment in Dolwyddelan in November 2008. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Dolwyddelan with a long lease were valued around £250,400. The average ground rent payable was £65 invoiced yearly. The lease terminated on 16 February 2089. Having 64 years unexpired we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.
In 2013 we were approached by Mrs Stephanie Pérez who, having owned a garden flat in Dolwyddelan in November 1999. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Dolwyddelan with an extended lease were valued about £189,000. The mid-range ground rent payable was £55 billed annually. The lease concluded on 6 November 2078. Having 53 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.