The nearer a residential lease in Llanrwst nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. The majority of flat owners in Llanrwst will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Llanrwst leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Jayden, started to get close to the 80-year threshold with the lease on his first floor apartment in Llanrwst. Having bought his flat 19 years ago, the length of the lease was of no importance. Fortunately, he noticed he needed to take steps soon on a lease extension. Jayden arranged for a lease extension just in the nick of time last April. Jayden and the freeholder via the management company eventually agreed on sum of £5,000 . If he not met the deadline, the amount would have increased by a minimum £1,000.
Last March we were contacted by Mr and Mrs. U François , who bought a first floor flat in Llanrwst in January 1999. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Identical premises in Llanrwst with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ran out in 2099. Given that there were 74 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Dr Grace Gunderson owned a one bedroom flat in Llanrwst in July 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Llanrwst with an extended lease were valued about £166,400. The average amount of ground rent was £60 invoiced monthly. The lease end date was in 2079. Considering the 54 years left we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.