The nearer a domestic lease in Hawarden gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Hawarden will meet the qualifying criteria; however a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Hawarden leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Charlie owned a studio flat in Hawarden being sold with a lease of fraction over 61 years remaining. Charlie informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr Matthew Richardson acquired a garden apartment in Hawarden in July 2005. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Hawarden with an extended lease were worth £233,200. The average ground rent payable was £60 collected annually. The lease concluded on 3 January 2086. Taking into account 61 years left we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of fees.
In 2013 we were phoned by Dr N King who, having purchased a one bedroom flat in Hawarden in August 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Hawarden with a long lease were valued around £171,800. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed in 2075. Having 50 years remaining we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.