Llanarth leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Llanarth will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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. |
Using our service will provide you better control over the value of your Llanarth leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a 2 bedroom apartment in Llanarth being marketed with a lease of fraction over 59 years left. Blake on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Mr and Mrs. I Ward was assigned a lease of a purpose-built flat in Llanarth in May 2004. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable homes in Llanarth with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed in 2082. Taking into account 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including legals.
Mr and Mrs. I Ward owned a garden flat in Llanarth in January 2002. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable premises in Llanarth with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed every twelve months. The lease elapsed in 2093. Taking into account 67 years left we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including costs.