There is no doubt about it a leasehold property in Llanrwst is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Llanrwst will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Llanrwst with in excess of 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanrwst can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Following protracted negotiations with the freeholder of her one bedroom flat in Llanrwst, Madeleine initiated the lease extension process as the eighty year mark was quickly nearing. The transaction was concluded in January 2014. The landlord’s fees were negotiated to slightly above 700 pounds.
Last Winter we were contacted by Mrs Gemma Moreau , who completed a purpose-built flat in Llanrwst in March 1999. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar flats in Llanrwst with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease finished in 2090. Having 64 years outstanding we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus professional charges.
Last month we were approach by Mr B Watson , who bought a purpose-built flat in Llanrwst in August 2006. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative premises in Llanrwst with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed quarterly. The lease concluded in 2101. Taking into account 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.