There is no doubt about it a leasehold flat or house in Deeside is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Deeside will qualify for this right; however a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 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 property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced 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 conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her leasehold flat in Deeside, Naomi commenced the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was finalised in November 2006. The landlord’s charges were negotiated to less than 700 GBP.
Mr and Mrs. V Bennett acquired a recently refurbished apartment in Deeside in March 2001. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar homes in Deeside with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced annually. The lease expired on 12 September 2079. Considering the 54 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including legals.
Last Christmas we were approach by Dr Evan Petit , who acquired a purpose-built flat in Deeside in November 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Deeside with a long lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended in 2099. Given that there were 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.