There is no doubt about it a leasehold property in Llanallgo is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Llanallgo will meet the qualifying criteria; that being said a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Llanallgo can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge 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.
Caleb was the the leasehold owner of a high value flat in Llanallgo on the market with a lease of a few days over 59 years outstanding. Caleb informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and secured an acceptable deal informally and sell the property.
Last Spring we were approach by Mrs P Rogers , who bought a one bedroom flat in Llanallgo in June 2004. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable properties in Llanallgo with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out on 5 February 2078. Given that there were 52 years left we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of fees.
Ms H López bought a ground floor flat in Llanallgo in October 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Llanallgo with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced annually. The lease concluded in 2089. Given that there were 63 years as a residual term we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.