On the balance of probabilities if you own a flat in Llanarth you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Llanarth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to protracted negotiations with the freeholder of her one bedroom flat in Llanarth, Stephanie initiated the lease extension process as the 80 year deadline was swiftly approaching. The transaction completed in March 2015. The freeholder’s fees were kept to an absolute minimum.
Dr R Flores bought a basement apartment in Llanarth in July 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Llanarth with an extended lease were in the region of £232,800. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2090. Given that there were 65 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Last month we were called by Mr J Torres , who acquired a studio apartment in Llanarth in June 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Llanarth with 100 year plus lease were worth £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2101. Given that there were 76 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.