There is no doubt about it a leasehold property in Dunvant is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Dunvant will meet the qualifying criteria; that being said a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent 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 roughly the equivalent as a freehold. Where an further 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Dunvant leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Charlie, started to get near to the eighty-year mark with the lease on his garden apartment in Dunvant. In buying his flat two decades ago, the unexpired term was of little interest. by good luck, he realised he needed to take steps soon on Extending the lease. Charlie extended the lease at the eleventh hour last April. Charlie and the landlord eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £925.
Mr and Mrs. D López completed a first floor apartment in Dunvant in May 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Dunvant with 100 year plus lease were worth £295,000. The average ground rent payable was £50 billed annually. The lease lapsed on 7 March 2100. Taking into account 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
In 2009 we were called by Mr and Mrs. A Cook who, having bought a studio flat in Dunvant in April 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Dunvant with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out on 27 September 2089. Having 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including fees.