The value of Llanarth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold residencies in Llanarth with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you better control over the value of your Llanarth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Llanarth, Zoe commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in March 2010. The landlord’s charges were restricted to below 550 GBP.
Last year we were phoned by Mr and Mrs. V Dupont , who completed a recently refurbished apartment in Llanarth in August 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Llanarth with a long lease were worth £275,000. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2102. Taking into account 76 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last Autumn we were e-mailed by Mrs K Martínez , who took over the lease of a first floor apartment in Llanarth in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical homes in Llanarth with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease came to a finish in 2082. Given that there were 56 years left we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus professional charges.