Shared owners do not have any legal rights to extend the term of their lease. Most share ownership leases were originally set at 99 years, as time goes by these leases lose their capital value and new buyers find raising a mortgage difficult as many high street lenders now require at least 80 years left on a lease before they will lend.
Our new voluntary scheme means that shared owners can now apply to purchase more years on their lease.
Under our voluntary lease extension scheme, your lease can be extended by either an extra 30 years or an extra 90 years (on top of the existing term). If we do not own the freehold of your property you can only extend your lease by the extra years if Clwyd Alyn has enough years left on its main lease to allow for it.
The cost of extending the lease is decided by an independent valuation, which we will arrange and which is not negotiable. You will bear the cost of the valuation. It will cost you more to extend your lease for an extra 90 years than it will for an extra 30 years.
The independent valuer will carry out a valuation to find out what the current market value of your property is, and what its market value will be, once your lease has been extended. They will then be able to work out how much the lease extension will cost and what you will need to pay.
Examples of independent valuers or surveyors include a district surveyor or surveyors registered with the Royal Institute of Chartered Surveyors (RICS). This makes sure the valuation is fair and does not favour either you or us. We can act and nominate am independent valuer for you.
You will need to use a solicitor to complete the legal paperwork once the valuation has been carried out and you have agreed to go ahead with the lease extension.
If you would like to extend your lease through our voluntary lease extension scheme, please follow the steps below.
You need to write to us (either by letter or email) to let us know that you wish to extend your lease under this voluntary lease extension scheme.
We will send you a reply with details of the costs and a valuation instruction form. You must fill in the valuation instruction form and send it back to us with a cheque for the valuation fee and administration fee.
The valuation fees are currently up to £400 plus VAT.
We also charge an administration fee of £200 plus VAT.
If you do decide to go ahead with the lease extension, you will also need to pay a further amount of approximately £400 to cover our solicitors’ fees.
When we have received your cheque and the completed valuation instruction form, we will contact a valuer to carry out the valuation. Once the valuation is completed, we will send you a copy. You must then decide whether you would like to go ahead with the lease extension.
If you do decide to go ahead, you will need to confirm in writing to us that you accept the valuation amount and that you want to extend your lease by either 30 or 90 years.
Please note you will have to pay for the cost of the valuation even if you change your mind about extending your lease.
Once we’ve received your approval of the valuation in writing, we will tell our solicitor to complete the lease extension. You must contact your own solicitor at the same time and instruct them to contact our solicitor.
Our solicitor will provide you with the extended lease to sign, which will be called the counterpart lease. A counterpart is a copy or a duplicate, of the original lease. The extended lease will also be signed and sealed by us. Your solicitor will need to arrange for us to register this before they can send it to the Land Registry to complete the lease extension.
As well as legal and valuation costs, you will need to pay an administration fee for our registration of the new extended lease and counterpart. You may also need to pay an extra administration fee to us if you need to increase your mortgage (if you have one) to pay for the cost of the lease extension if your lease requires your mortgage to be registered with us.
The valuation is valid for six months only, so you must complete the lease extension within that time. If you do not complete it within that time, we will need to arrange to value your property again, or get confirmation from the valuer that the valuation is still correct. You may have to pay an extra charge if we need to revalue your property.
You must make sure you do not owe us any service charge or ground rent before we give you permission to extend your lease. We will let you know if you owe us any money before we arrange for the valuation to be carried out.
More information can be provided by our Leasehold and Sales Manager Team on 0800 183 5757 536824 or email: firstname.lastname@example.org