Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Deeside. Clearly, the length of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Deeside have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful deliberation before putting off your Deeside lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Deeside,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Deeside valuers.
Last Summer Owen, started to get close to the eighty-year mark with the lease on his basement flat in Deeside. Having bought his property two decades ago, the length of the lease was of minimal significance. Thankfully, he realised he needed to take action soon on a lease extension. Owen arranged for a lease extension at the eleventh hour in May. Owen and the landlord subsequently agreed on an amount of £5,000 . If the lease had gone to less than eighty years, the price would have become more costly by at least £1,125.
In 2013 we were contacted by Mrs Millie Collins who, having completed a basement flat in Deeside in August 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Deeside with a long lease were worth £200,000. The average amount of ground rent was £50 collected every twelve months. The lease lapsed on 15 November 2104. Given that there were 78 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last Spring we were contacted by Mr R Thomas , who purchased a basement flat in Deeside in February 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Deeside with a long lease were worth £267,600. The average amount of ground rent was £65 billed quarterly. The lease came to a finish in 2093. Given that there were 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including expenses.