Benllech leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Benllech residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Benllech you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Benllech flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Benllech with more than one hundred years remaining 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Engaging our service will provide you better control over the value of your Benllech leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a conversion apartment in Benllech on the market with a lease of a few days over fifty eight years unexpired. Lucas informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2012 we were contacted by Mr and Mrs. G Davies who, having owned a basement flat in Benllech in June 2012. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Benllech with a long lease were valued around £275,000. The average amount of ground rent was £45 invoiced annually. The lease ended in 2095. Having 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2011 we were phoned by Dr Zachary Vincent who, having completed a garden flat in Benllech in May 2004. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable flats in Benllech with an extended lease were worth £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out on 25 January 2084. Given that there were 58 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.