It’s a harsh truth that a Caerwys residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Caerwys property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Caerwys will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Caerwys with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Virgin |
The lawyers that we work with handle 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.
Last year Hugo, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Caerwys. In buying his property 18 years previously, the unexpired term was of minimal interest. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Hugo arranged for a lease extension just ahead of time in July. Hugo and the freeholder via the management company subsequently agreed on a premium of £5,500 . If he had missed the deadline, the price would have increased by a minimum £1,075.
Last Spring we were contacted by Ms M Hill , who purchased a basement flat in Caerwys in January 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Caerwys with an extended lease were valued around £243,000. The average amount of ground rent was £65 billed quarterly. The lease terminated on 5 April 2089. Taking into account 63 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
Last November we were approach by Mr and Mrs. A Jackson , who took over the lease of a studio apartment in Caerwys in February 2006. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable homes in Caerwys with a long lease were in the region of £181,600. The average ground rent payable was £55 collected yearly. The lease finished on 25 August 2078. Considering the 52 years left we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.