Llanallgo leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Llanallgo tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Llanallgo you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Llanallgo flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanallgo can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 dealing with Llanallgo lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the freeholder of her first floor apartment in Llanallgo, Molly started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The lease extension was finalised in March 2010. The landlord’s fees were kept to an absolute minimum.
Mr Harry Kelly purchased a purpose-built flat in Llanallgo in September 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Llanallgo with an extended lease were valued around £193,400. The average ground rent payable was £65 collected quarterly. The lease concluded on 19 June 2085. Considering the 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.
Mr C Taylor was assigned a lease of a purpose-built apartment in Llanallgo in February 1995. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparable residencies in Llanallgo with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out in 2096. Taking into account 70 years unexpired we calculated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of expenses.