As the length of the unexpired term of a Dyserth residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Dyserth will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dyserth can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 landlord of her garden apartment in Dyserth, Molly initiated the lease extension process as the eighty year deadline was swiftly approaching. The legal work was finalised in May 2015. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Dr Ashleigh King who, having bought a basement flat in Dyserth in March 1997. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable flats in Dyserth with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 collected per annum. The lease concluded in 2095. Taking into account 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
Last Spring we were phoned by Ms P Taylor , who moved into a one bedroom apartment in Dyserth in January 2010. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Identical flats in Dyserth with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2084. Given that there were 59 years left we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.