The market value of Llanarth and Oakford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is below than eighty years
Leasehold properties in Llanarth and Oakford with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Llanarth and Oakford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
George was the the leasehold owner of a 2 bedroom flat in Llanarth and Oakford being sold with a lease of fraction over 59 years outstanding. George on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were George to exercise his statutory right. George obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last year we were called by Mr and Mrs. K Mason , who purchased a ground floor apartment in Llanarth and Oakford in September 1998. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Llanarth and Oakford with 100 year plus lease were valued about £245,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out on 2 April 2094. Given that there were 68 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2013 we were contacted by Mr and Mrs. N Ali who, having completed a studio flat in Llanarth and Oakford in September 2012. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable properties in Llanarth and Oakford with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2105. Taking into account 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.