The re-sale value of a leasehold property in Llanarth depends on how long the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the eighty year threshold. Current legislation enables Llanarth qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Llanarth with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Llanarth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanarth valuers.
Dexter was the the leasehold owner of a 2 bedroom flat in Llanarth on the market with a lease of fraction over 61 years remaining. Dexter informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2014 we were contacted by Mrs Sophie Walker who, having owned a recently refurbished apartment in Llanarth in August 1996. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable residencies in Llanarth with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2094. Considering the 68 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Mrs D Scott was assigned a lease of a one bedroom flat in Llanarth in March 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Llanarth with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 8 October 2105. Considering the 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.