Caerwys leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Caerwys tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Caerwys you must check if your lease has between 70 and 90 years remaining. There are good reasons why a Caerwys flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Caerwys leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Liam, came very close to the 80-year mark with the lease on his ground floor apartment in Caerwys. Having bought his property 19 years previously, the lease term was of minimal concern. Fortunately, he realised he needed to take action soon on a lease extension. Liam extended the lease at the eleventh hour last January. Liam and the freeholder subsequently settled on the final figure of £5,500 . If the lease had descended lower than 80 years, the figure would have escalated by a minimum £975.
In 2014 we were contacted by Mrs T Kelly who, having purchased a ground floor apartment in Caerwys in November 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Caerwys with 100 year plus lease were worth £267,600. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2093. Given that there were 67 years remaining we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.
Last Christmas we were phoned by Mr and Mrs. O Ward , who took over the lease of a recently refurbished flat in Caerwys in January 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative homes in Caerwys with 100 year plus lease were valued about £201,200. The average amount of ground rent was £55 collected monthly. The lease terminated in 2082. Having 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.