Unfortunately that a Llanarth and Oakford residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Llanarth and Oakford property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Llanarth and Oakford will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Llanarth and Oakford with more than 100 years left 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Llanarth and Oakford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanarth and Oakford valuers.
After protracted negotiations with the freeholder of her two bedroom apartment in Llanarth and Oakford, Abbie commenced the lease extension process as the eighty year mark was rapidly nearing. The lease extension completed in September 2006. The landlord’s charges were kept to an absolute minimum.
In 2009 we were called by Ms O Roberts who, having completed a basement flat in Llanarth and Oakford in January 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Llanarth and Oakford with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2106. Given that there were 80 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Last Summer we were phoned by Mrs Danielle Watson , who completed a recently refurbished flat in Llanarth and Oakford in August 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Llanarth and Oakford with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 billed monthly. The lease ran out on 3 June 2086. Considering the 60 years left we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.