It’s a harsh certainty that a Dolwyddelan residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Dolwyddelan property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. Most leasehold owners in Dolwyddelan will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Dolwyddelan with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service will provide you enhanced control over the value of your Dolwyddelan leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a studio apartment in Dolwyddelan being marketed with a lease of a few days over fifty eight years unexpired. Elijah on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Dr Elijah Miller completed a garden flat in Dolwyddelan in February 2011. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Dolwyddelan with an extended lease were worth £280,000. The average amount of ground rent was £45 collected quarterly. The lease termination date was on 19 June 2096. Considering the 70 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last year we were contacted by Dr Amelia Williams , who was assigned a lease of a studio apartment in Dolwyddelan in July 2000. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar flats in Dolwyddelan with a long lease were valued about £223,400. The average ground rent payable was £60 billed per annum. The lease ended in 2085. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of expenses.