The closer a domestic lease in Nefyn gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining 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. Most flat owners in Nefyn will meet the qualifying criteria; however a lawyer can confirm if you are eligible 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 approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Nefyn,the lease extension experts that we work with will always be happy 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.
Following protracted correspondence with the freeholder of her first floor apartment in Nefyn, Alexandra commenced the lease extension process as the 80 year mark was swiftly coming. The legal work completed in March 2012. The freeholder’s costs were negotiated to below 450 pounds.
Last January we were phoned by Dr Tyler Clark , who bought a purpose-built apartment in Nefyn in April 2006. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Identical flats in Nefyn with an extended lease were worth £191,000. The average ground rent payable was £65 billed quarterly. The lease finished on 21 August 2083. Given that there were 58 years left we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including legals.
Mr and Mrs. T Ward was assigned a lease of a one bedroom apartment in Nefyn in October 2006. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar premises in Nefyn with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 invoiced yearly. The lease finished in 2094. Having 69 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.