Llanarth leases on residential properties are gradually diminishing in 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. The majority of owners of residential leasehold property in Llanarth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Llanarth you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Llanarth with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Llanarth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanarth valuers.
Matthew owned a 2 bedroom flat in Llanarth being sold with a lease of a little over 61 years outstanding. Matthew informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2014 we were contacted by Mr and Mrs. A Bertrand who, having purchased a one bedroom apartment in Llanarth in April 2003. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative homes in Llanarth with an extended lease were in the region of £191,000. The average ground rent payable was £65 billed yearly. The lease concluded in 2083. Given that there were 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of fees.
Last Autumn we were approach by Dr Grace Wilson , who completed a one bedroom flat in Llanarth in February 1997. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical homes in Llanarth with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed every twelve months. The lease finished in 2094. Given that there were 69 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.