When it comes to domestic leasehold premises in Llanarmon Yn Ial, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are less than eighty years left. Residents in Llanarmon Yn Ial with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has less than 80 years remaining, under the current legislation the landlord can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Llanarmon Yn Ial leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold proprietor of a studio flat in Llanarmon Yn Ial on the market with a lease of fraction over 72 years left. Caleb informally approached his landlord being a well known Bristol-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. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. G Norbert took over the lease of a one bedroom flat in Llanarmon Yn Ial in March 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable flats in Llanarmon Yn Ial with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated on 17 November 2095. Having 69 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr Felix Michel took over the lease of a one bedroom apartment in Llanarmon Yn Ial in October 1997. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative flats in Llanarmon Yn Ial with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 invoiced monthly. The lease expired on 2 September 2106. Taking into account 80 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.