Caerwys leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Caerwys enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Caerwys you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure Caerwys lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following lengthy negotiations with the freeholder of her leasehold flat in Caerwys, Rhiannon initiated the lease extension process as the 80 year mark was fast nearing. The transaction completed in May 2013. The freeholder’s costs were negotiated to slightly above 450 GBP.
Mrs Rachael Hall purchased a studio flat in Caerwys in October 1996. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative homes in Caerwys with a long lease were valued around £285,000. The average amount of ground rent was £45 billed quarterly. The lease ended in 2097. Given that there were 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
Last year we were contacted by Mr and Mrs. J Mercier , who owned a newly refurbished flat in Caerwys in September 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Caerwys with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2086. Considering the 61 years left we estimated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.