With a residential leasehold premises in Caerwys, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Leasehold owners in Caerwys with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Caerwys,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caerwys valuers.
Leo owned a conversion flat in Caerwys on the market with a lease of fraction over fifty eight years remaining. Leo on an informal basis spoke with his freeholder 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 initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were contacted by Dr P Smith who, having purchased a studio apartment in Caerwys in March 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable premises in Caerwys with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 billed per annum. The lease ran out in 2092. Given that there were 66 years unexpired we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including expenses.
In 2009 we were phoned by Mr and Mrs. F Davies who, having moved into a garden apartment in Caerwys in March 2005. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar properties in Caerwys with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2081. Given that there were 55 years remaining we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.