It’s an underpublicised certainty that a Dyserth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Dyserth property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. The majority of flat owners in Dyserth will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Dyserth leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her first floor flat in Dyserth, Amber initiated the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work was finalised in September 2014. The landlord’s fees were kept to an absolute minimum.
Last Winter we were called by Mr Alexander Davies , who owned a studio flat in Dyserth in June 2000. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Dyserth with an extended lease were valued about £198,800. The average ground rent payable was £55 collected monthly. The lease ran out on 2 July 2080. Considering the 55 years left we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.
In 2012 we were approached by Mrs Erin Hall who, having took over the lease of a recently refurbished apartment in Dyserth in July 1995. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Dyserth with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished on 24 September 2100. Having 75 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.