Caerwys leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Caerwys will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you increased control over the value of your Caerwys leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold owner of a 2 bedroom apartment in Caerwys being marketed with a lease of a little over 72 years remaining. Oliver on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2011 we were phoned by Ms Yasmin Hill who, having purchased a garden apartment in Caerwys in September 2010. We are asked if we could estimate the 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 £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated on 24 January 2099. Having 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last month we were called by Dr C Roux , who owned a purpose-built flat in Caerwys in August 2009. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable premises in Caerwys with a long lease were worth £235,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease expiry date was in 2088. Given that there were 62 years unexpired we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.