The re-sale value of a leasehold property in Llanrwst depends on how long the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the eighty year threshold. Statute entitles Llanrwst qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The lawyers that we work with handle Llanrwst 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.
Half a year ago Dylan, started to get near to the 80-year threshold with the lease on his basement flat in Llanrwst. Having bought his flat two decades ago, the lease term was of little interest. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Dylan arranged for a lease extension just ahead of time last April. Dylan and the landlord who owned the flat above eventually settled on sum of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
In 2011 we were called by Ms K James who, having was assigned a lease of a garden flat in Llanrwst in October 2005. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Llanrwst with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease came to a finish on 9 January 2078. Taking into account 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of expenses.
Mr K Garcia moved into a newly refurbished apartment in Llanrwst in April 1996. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Llanrwst with a long lease were valued about £225,400. The average ground rent payable was £45 billed every twelve months. The lease ended in 2089. Having 64 years outstanding we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including professional charges.