With a long leasehold premises in Dyserth, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems 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 becomes disproportionately greater notably when there are fewer than 80 years remaining. Leasehold owners in Dyserth with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than 80 years remaining, under the current legislation the landlord can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Dyserth with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Dyserth can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Dyserth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the freeholder of her one bedroom apartment in Dyserth, Sophie started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work was finalised in May 2008. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were approach by Dr Harry Edwards , who acquired a one bedroom flat in Dyserth in January 1995. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Dyserth with an extended lease were valued around £248,000. The mid-range ground rent payable was £65 collected yearly. The lease terminated on 8 November 2088. Considering the 63 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including legals.
Dr D Lee acquired a one bedroom flat in Dyserth in September 2006. We are asked if we could estimate the price could be to prolong the lease by 90 years. Identical flats in Dyserth with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease came to a finish on 26 May 2077. Given that there were 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including costs.