Deeside leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Deeside residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Deeside you really ought to see if your lease has between 70 and 90 years left. There are compelling reasons why a Deeside flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Deeside with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Deeside leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel was the the leasehold proprietor of a studio flat in Deeside being marketed with a lease of fraction over 61 years left. Nathaniel on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr Michael Miller completed a purpose-built apartment in Deeside in February 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Deeside with 100 year plus lease were worth £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease termination date was in 2078. Having 53 years as a residual term we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.
Dr V Flores purchased a purpose-built flat in Deeside in October 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Deeside with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed monthly. The lease end date was in 2098. Having 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.