Llandaff leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Llandaff residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Llandaff you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Llandaff flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Llandaff with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
National Westminster Bank | 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. |
Using our service will provide you increased control over the value of your Llandaff leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her ground floor apartment in Llandaff, Rhiannon started the lease extension process as the 80 year threshold was fast nearing. The lease extension was finalised in August 2005. The landlord’s costs were kept to an absolute minimum.
Last Winter we were phoned by Mr H Girard , who purchased a ground floor flat in Llandaff in April 2007. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Llandaff with 100 year plus lease were worth £250,000. The average ground rent payable was £50 collected monthly. The lease termination date was on 1 May 2094. Considering the 69 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Mr Jasper González was assigned a lease of a first floor flat in Llandaff in March 2005. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable homes in Llandaff with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease expiry date was on 9 February 2105. Considering the 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.