With a domestic leasehold premises in Llandaff, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years left. Leasehold owners in Llandaff with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Llandaff,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llandaff valuers.
Jason owned a 2 bedroom apartment in Llandaff being sold with a lease of fraction over sixty years unexpired. Jason on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were called by Ms S Robinson who, having acquired a newly refurbished flat in Llandaff in October 2001. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar flats in Llandaff with a long lease were in the region of £200,800. The average ground rent payable was £65 billed per annum. The lease lapsed in 2085. Having 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
In 2014 we were contacted by Dr M Bailey who, having took over the lease of a recently refurbished apartment in Llandaff in March 2006. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative flats in Llandaff with a long lease were worth £255,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 15 February 2095. Having 70 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.