Llanarth and Oakford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Llanarth and Oakford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Llanarth and Oakford you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Llanarth and Oakford with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Llanarth and Oakford leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a studio flat in Llanarth and Oakford on the market with a lease of just over 72 years left. Jonathan on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last Summer we were called by Dr P Phillips , who was assigned a lease of a recently refurbished flat in Llanarth and Oakford in June 2006. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar flats in Llanarth and Oakford with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected per annum. The lease expired on 17 January 2099. Taking into account 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Ms E Parker moved into a one bedroom apartment in Llanarth and Oakford in March 2005. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar flats in Llanarth and Oakford with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 invoiced per annum. The lease terminated in 2079. Having 53 years remaining we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.