When it comes to domestic leasehold property in Caerwys, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Anyone in Caerwys with a lease nearing 81 years left should seriously think of extending it sooner than later. Once the lease term has fewer than 80 years left, under the current legislation the freeholder can calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Half a year ago Jasper, came seriously near to the 80-year mark with the lease on his studio flat in Caerwys. In buying his property twenty years previously, the lease term was of no importance. Fortunately, he recognised he needed to take action soon on Extending the lease. Jasper was able to extend his lease at the eleventh hour in July. Jasper and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had slid lower than 80 years, the price would have gone up by at least £975.
Last Spring we were contacted by Mr and Mrs. M Bennett , who purchased a ground floor flat in Caerwys in July 2002. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar flats in Caerwys with a long lease were valued around £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed on 8 August 2101. Considering the 76 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2013 we were e-mailed by Dr Rachael Campbell who, having took over the lease of a newly refurbished apartment in Caerwys in May 2008. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar premises in Caerwys with a long lease were worth £252,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ended in 2090. Taking into account 65 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.