Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dyffryn Ardudwy. Clearly, the length of lease left shortens over time. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Dyffryn Ardudwy have the legal entitlement to extend the lease for a further 90 years under legislation. You should give due deliberation before putting off your Dyffryn Ardudwy lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is generally accepted 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 premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you better control over the value of your Dyffryn Ardudwy leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Kian, started to get near to the 80-year mark with the lease on his two bedroom apartment in Dyffryn Ardudwy. Having bought his home twenty years ago, the unexpired term was of minimal interest. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. Kian extended the lease just under the wire in April. Kian and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the premium would have increased by a minimum £925.
In 2011 we were called by Mr Eli Alexander who, having owned a basement flat in Dyffryn Ardudwy in January 2003. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar residencies in Dyffryn Ardudwy with an extended lease were in the region of £252,800. The average amount of ground rent was £65 billed per annum. The lease came to a finish in 2090. Given that there were 65 years remaining we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.
In 2011 we were phoned by Mr and Mrs. W Murphy who, having acquired a one bedroom flat in Dyffryn Ardudwy in June 2008. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Dyffryn Ardudwy with a long lease were valued about £191,400. The average amount of ground rent was £55 invoiced yearly. The lease concluded on 18 August 2079. Given that there were 54 years outstanding we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus legals.