With a residential leasehold property in Dyffryn Ardudwy, you are actually purchasing a right to live in a property for a prescribed time frame. 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 a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Dyffryn Ardudwy with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Dyffryn Ardudwy with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Dyffryn Ardudwy,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dyffryn Ardudwy valuers.
Subsequent to unsuccessful negotiations with the landlord of her basement flat in Dyffryn Ardudwy, Georgina commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in November 2008. The landlord’s costs were kept to an absolute minimum.
Last month we were e-mailed by Mr Jake Williams , who completed a first floor apartment in Dyffryn Ardudwy in February 2008. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable properties in Dyffryn Ardudwy with an extended lease were in the region of £184,000. The average ground rent payable was £55 invoiced annually. The lease lapsed in 2078. Having 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.
Ms M Evans bought a one bedroom flat in Dyffryn Ardudwy in August 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Dyffryn Ardudwy with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish in 2098. Considering the 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.