Unfortunately that a Benllech residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Benllech property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Benllech will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Virgin |
The conveyancers that we work with handle Benllech lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
14 months ago Kai, started to get close to the 80-year threshold with the lease on his first floor flat in Benllech. In buying his property two decades ago, the length of the lease was of no concern. Thankfully, he recognised he needed to take steps soon on a lease extension. Kai extended the lease at the eleventh hour in April. Kai and the landlord ultimately settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,125.
Last month we were e-mailed by Dr L Carter , who completed a recently refurbished flat in Benllech in March 2009. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Benllech with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 collected per annum. The lease ended in 2083. Considering the 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
Ms L Garcia owned a garden apartment in Benllech in August 2006. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Benllech with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2103. Considering the 77 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.