Dulas and Nebo leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Dulas and Nebo tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Dulas and Nebo you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Dulas and Nebo 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 lawyer we work with provide it.
After lengthy negotiations with the freeholder of her studio flat in Dulas and Nebo, Abigail initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in April 2007. The landlord’s charges were negotiated to a tad over 600 GBP.
Last Spring we were e-mailed by Mr and Mrs. I Wright , who purchased a recently refurbished apartment in Dulas and Nebo in April 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in Dulas and Nebo with a long lease were valued about £203,200. The average ground rent payable was £65 billed every twelve months. The lease end date was in 2086. Given that there were 61 years left we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including fees.
In 2011 we were e-mailed by Mr and Mrs. K David who, having owned a studio apartment in Dulas and Nebo in February 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical premises in Dulas and Nebo with a long lease were worth £260,000. The average ground rent payable was £50 collected per annum. The lease ran out in 2096. Taking into account 71 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.