The market value of a leasehold property in Benllech depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded prior to the eighty year mark. Leasehold Reform legislation enables Benllech qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Benllech with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Benllech can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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.
In recent months Dylan, started to get close to the eighty-year mark with the lease on his first floor flat in Benllech. Having purchased his property 19 years ago, the length of the lease was of little concern. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Dylan extended the lease just under the wire last June. Dylan and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,075.
In 2012 we were e-mailed by Mr and Mrs. S Nelson who, having purchased a one bedroom flat in Benllech in February 2009. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparable properties in Benllech with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease finished in 2091. Considering the 66 years left we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of fees.
Mrs L Cooper moved into a newly refurbished flat in Benllech in March 2002. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable residencies in Benllech with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease finished on 27 June 2080. Given that there were 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.