Llanrwst leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Llanrwst tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llanrwst you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Llanrwst leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Llanrwst with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Llanrwst,the lease extension solicitors 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 Llanrwst valuers.
Jayden owned a 2 bedroom flat in Llanrwst on the market with a lease of just over 72 years outstanding. Jayden informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Mr and Mrs. V Thompson moved into a recently refurbished flat in Llanrwst in May 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Llanrwst with a long lease were valued about £218,000. The average ground rent payable was £45 billed monthly. The lease came to a finish on 16 April 2089. Taking into account 63 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including expenses.
Last year we were approach by Dr E Reed , who owned a one bedroom apartment in Llanrwst in September 1999. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Llanrwst with a long lease were valued around £265,000. The average amount of ground rent was £55 collected per annum. The lease came to a finish on 9 November 2100. Taking into account 74 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.