Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Dyserth. Inevitably, the length of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Dyserth have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Dyserth lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
Leasehold properties in Dyserth with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with procure Dyserth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Spring Jude, started to get near to the 80-year threshold with the lease on his studio flat in Dyserth. In buying his property 18 years ago, the length of the lease was of little concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Jude arranged for a lease extension just ahead of time last January. Jude and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If he had missed the deadline, the price would have increased by at least £1,125.
In 2009 we were phoned by Dr Max Moore who, having completed a one bedroom flat in Dyserth in May 2008. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Dyserth with an extended lease were valued around £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated on 12 July 2096. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Mr David Martinez was assigned a lease of a garden flat in Dyserth in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Dyserth with a long lease were in the region of £230,800. The average ground rent payable was £60 collected yearly. The lease finished on 3 August 2085. Considering the 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 not including fees.