When it comes to domestic leasehold premises in Llanarmon Yn Ial, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years remaining. Residents in Llanarmon Yn Ial with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property 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. |
| 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Llanarmon Yn Ial can be a difficult process. We recommend you secure guidance 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 a wealth of experience dealing with Llanarmon Yn Ial lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a 2 bedroom apartment in Llanarmon Yn Ial being sold with a lease of just over sixty years remaining. Jake on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. C Gómez who, having bought a purpose-built flat in Llanarmon Yn Ial in September 2010. The question was if we could estimate the premium could be for a ninety year lease extension. Identical residencies in Llanarmon Yn Ial with a long lease were worth £183,600. The average ground rent payable was £65 billed annually. The lease lapsed in 2083. Given that there were 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
Ms Laura Martínez bought a basement apartment in Llanarmon Yn Ial in October 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable flats in Llanarmon Yn Ial with an extended lease were in the region of £245,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated on 15 February 2094. Taking into account 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.