Nefyn leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Nefyn will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Nefyn,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nefyn valuers.
Two years ago Isaac, started to get near to the 80-year threshold with the lease on his leasehold apartment in Nefyn. Having purchased his home two decades ago, the length of the lease was of little relevance. As luck would have it, he noticed he needed to take action soon on a lease extension. Isaac arranged for a lease extension at the eleventh hour in July. Isaac and the landlord eventually agreed on sum of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £1,025.
Last Spring we were approach by Mr and Mrs. R Richardson , who was assigned a lease of a recently refurbished flat in Nefyn in August 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Nefyn with an extended lease were valued around £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated on 18 August 2098. Considering the 73 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2014 we were approached by Mr F White who, having purchased a first floor flat in Nefyn in September 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative properties in Nefyn with an extended lease were valued around £264,000. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out in 2078. Having 53 years unexpired we estimated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of legals.