Llanrwst leases on domestic properties are gradually losing value. Where your lease has about ninety 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 existing lease dips under 80 years - otherwise a higher premium will be due. Flat owners in Llanrwst will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Llanrwst with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Llanrwst can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Llanrwst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Harry, came perilously close to the eighty-year threshold with the lease on his two bedroom apartment in Llanrwst. Having bought his home 19 years ago, the length of the lease was of little bearing. Luckily, he recognised he needed to take action soon on Extending the lease. Harry was able to extend his lease just under the wire in September. Harry and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he not met the deadline, the figure would have increased by a minimum £925.
In 2014 we were phoned by Dr Sian Nguyen who, having completed a recently refurbished flat in Llanrwst in May 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Llanrwst with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 billed every twelve months. The lease finished in 2078. Given that there were 52 years left we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of professional charges.
In 2013 we were phoned by Ms Alexandra Vincent who, having bought a recently refurbished apartment in Llanrwst in January 2008. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Llanrwst with a long lease were valued about £218,000. The average amount of ground rent was £45 billed yearly. The lease lapsed on 24 March 2089. Given that there were 63 years left we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus legals.