It’s an underpublicised certainty that a Llandaff residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Llandaff property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Llandaff will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Llandaff 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.
Owen owned a 2 bedroom apartment in Llandaff being sold with a lease of fraction over sixty years unexpired. Owen informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last month we were approach by Mr Eliot Clarke , who bought a purpose-built apartment in Llandaff in January 1995. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar homes in Llandaff with 100 year plus lease were worth £232,800. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2091. Taking into account 65 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Dr Jonathan Morris was assigned a lease of a one bedroom flat in Llandaff in March 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Llandaff with a long lease were in the region of £275,000. The average ground rent payable was £55 collected yearly. The lease ran out on 2 April 2102. Having 76 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.