Benllech leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Benllech will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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 Benllech can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 Benllech lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix was the the leasehold proprietor of a high value apartment in Benllech being marketed with a lease of a few days over 59 years left. Felix on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Felix to invoke his statutory right. Felix procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Dr G Robinson moved into a ground floor flat in Benllech in February 2001. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar flats in Benllech with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2102. Having 76 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
In 2012 we were phoned by Mr and Mrs. L Cooper who, having bought a first floor flat in Benllech in August 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Benllech with a long lease were worth £257,800. The mid-range amount of ground rent was £65 billed annually. The lease concluded on 19 September 2091. Considering the 65 years as a residual term we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.