The nearer a residential lease in Llanbedr nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Llanbedr will qualify for this right; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Llanbedr,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanbedr valuers.
Eli owned a 2 bedroom flat in Llanbedr on the market with a lease of just over fifty eight years unexpired. Eli informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree 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 increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were approached by Ms Isobel Bernard who, having owned a purpose-built flat in Llanbedr in March 2009. We are asked if we could approximate the price would be for a 90 year lease extension. Similar homes in Llanbedr with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected annually. The lease ran out in 2103. Given that there were 77 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
Dr James Phillips took over the lease of a garden apartment in Llanbedr in October 2000. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Llanbedr with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish in 2083. Considering the 57 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.