The value of Llanarth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Llanarth with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanarth can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Llanarth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her purpose-built flat in Llanarth, Sophie commenced the lease extension process as the eighty year mark was rapidly approaching. The lease extension completed in September 2015. The freeholder’s costs were kept to an absolute minimum.
Last year we were e-mailed by Dr F Ramírez , who moved into a basement flat in Llanarth in July 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Llanarth with a long lease were valued around £260,000. The mid-range ground rent payable was £50 collected per annum. The lease finished on 18 April 2098. Given that there were 72 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
In 2014 we were phoned by Mr and Mrs. G Sánchez who, having purchased a one bedroom apartment in Llanarth in January 2005. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical premises in Llanarth with an extended lease were worth £261,600. The average ground rent payable was £60 billed quarterly. The lease lapsed in 2078. Having 52 years left we estimated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of expenses.