The closer a domestic lease in Rhos On Sea nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than 80 years left 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 primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Rhos On Sea will qualify for this right; however a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rhos On Sea can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 procuring Rhos On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Riley, came seriously close to the eighty-year threshold with the lease on his studio flat in Rhos On Sea. Having purchased his home two decades ago, the unexpired term was of little importance. Luckily, he recognised he would soon be paying way over the odds for a lease extension. Riley extended the lease at the eleventh hour in April. Riley and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had dropped below 80 years, the price would have become more costly by at least £1,025.
Last year we were contacted by Mrs D Dupont , who bought a garden apartment in Rhos On Sea in January 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Rhos On Sea with an extended lease were in the region of £260,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated on 20 June 2097. Taking into account 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Mr Finn Leroy completed a garden flat in Rhos On Sea in February 2001. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical homes in Rhos On Sea with 100 year plus lease were worth £256,600. The average ground rent payable was £60 billed yearly. The lease end date was on 20 September 2077. Given that there were 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including legals.