Deeside leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Deeside will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Deeside with in excess of one hundred years left 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Retaining our service gives you better control over the value of your Deeside leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Elijah, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Deeside. Having purchased his flat 19 years previously, the unexpired term was of little relevance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Elijah was able to extend his lease just under the wire last March. Elijah and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had dipped to less than 80 years, the price would have become more exhorbitant by at least £1,000.
Mr and Mrs. Y Leroy owned a recently refurbished flat in Deeside in April 2011. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Deeside with an extended lease were valued around £218,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired on 10 May 2085. Having 59 years left we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus expenses.
In 2010 we were phoned by Mr and Mrs. I Hernández who, having purchased a basement flat in Deeside in October 1996. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative flats in Deeside with an extended lease were valued around £205,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed in 2105. Considering the 79 years left we estimated the premium to the landlord for the lease extension to be within £7,600 and £8,800 not including professional charges.