Unfortunately that a Llanrwst residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Llanrwst property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Llanrwst will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Llanrwst with more than 100 years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Llanrwst can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 a wealth of experience procuring Llanrwst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her garden flat in Llanrwst, Grace started the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in March 2006. The freeholder’s costs were kept to an absolute minimum.
Dr Y Alexander bought a garden apartment in Llanrwst in September 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Similar flats in Llanrwst with a long lease were valued around £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease concluded on 9 July 2078. Having 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.
Last Christmas we were contacted by Dr Finn Davis , who took over the lease of a newly refurbished apartment in Llanrwst in March 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Llanrwst with 100 year plus lease were valued about £232,800. The mid-range ground rent payable was £45 billed per annum. The lease elapsed in 2089. Having 65 years remaining we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.