It’s an underpublicised truth that a Caerwys residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Caerwys property prices.Once your lease gets to 85ish years, you need to 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 slips lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Caerwys will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Caerwys can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Caerwys lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a 2 bedroom flat in Caerwys on the market with a lease of a few days over sixty years remaining. Felix on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2012 we were e-mailed by Mr and Mrs. W Clarke who, having completed a first floor apartment in Caerwys in August 2008. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical properties in Caerwys with a long lease were valued about £270,000. The average ground rent payable was £65 invoiced per annum. The lease end date was on 2 April 2093. Given that there were 68 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Mrs Lily Alexander owned a garden flat in Caerwys in July 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Caerwys with an extended lease were in the region of £208,600. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish on 12 May 2082. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.