As the the remaining lease term of a Llanarth domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Llanarth will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Llanarth with more than one hundred years outstanding on the lease are often referred to as ‘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 estate charges warrant it.
| 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. |
| 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 experts that we work with will always be prepared 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.
Zachary owned a 2 bedroom apartment in Llanarth being marketed with a lease of a little over 72 years outstanding. Zachary informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Dr Ibrahim Sánchez , who moved into a studio flat in Llanarth in September 2001. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar premises in Llanarth with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease finished on 22 January 2086. Considering the 60 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.
In 2014 we were contacted by Dr B Patel who, having completed a basement flat in Llanarth in October 2007. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Llanarth with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed monthly. The lease finished on 13 October 2097. Considering the 71 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.