Llanarth leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Llanarth will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Lease extensions in Llanarth can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Llanarth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper owned a conversion apartment in Llanarth on the market with a lease of a few days over sixty years remaining. Jasper on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last June we were approach by Mr and Mrs. W Brooks , who purchased a studio flat in Llanarth in August 2003. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Llanarth with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded on 26 July 2094. Having 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
In 2010 we were called by Dr Alice Moore who, having took over the lease of a one bedroom flat in Llanarth in May 2006. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical flats in Llanarth with a long lease were valued about £290,000. The average ground rent payable was £60 invoiced per annum. The lease elapsed in 2105. Given that there were 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.