As the length of the unexpired term of a Llanarth domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Llanarth will qualify for this right; however a conveyancing solicitor will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Llanarth with more than 100 years remaining 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Llanarth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her two bedroom apartment in Llanarth, Kelsey initiated the lease extension process as the 80 year threshold was fast coming. The transaction completed in May 2012. The landlord’s fees were kept to an absolute minimum.
Dr W Davies bought a one bedroom flat in Llanarth in July 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Llanarth with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded in 2085. Considering the 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
Mr and Mrs. F Pérez moved into a basement flat in Llanarth in September 2003. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable residencies in Llanarth with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed monthly. The lease termination date was on 5 July 2096. Given that there were 71 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.