Llanelli leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops lower than eighty years - otherwise a higher amount will be payable. Flat owners in Llanelli will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Llanelli with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Llanelli 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.
Trailing lengthy correspondence with the landlord of her ground floor flat in Llanelli, Erin initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was finalised in May 2011. The landlord’s costs were restricted to slightly above 700 GBP.
Mr Hugo Thomas purchased a one bedroom flat in Llanelli in September 2006. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative homes in Llanelli with a long lease were worth £250,400. The average amount of ground rent was £65 collected quarterly. The lease concluded on 16 August 2089. Having 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of fees.
Last year we were contacted by Mr and Mrs. D Wood , who acquired a recently refurbished flat in Llanelli in November 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative premises in Llanelli with an extended lease were in the region of £184,000. The mid-range ground rent payable was £55 collected monthly. The lease lapsed in 2078. Having 53 years outstanding we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.