Llanbedr leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Llanbedr tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Llanbedr you must investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Llanbedr flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
Leasehold premises in Llanbedr with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Llanbedr,the lease extension lawyers 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 Llanbedr valuers.
In 2014 Hunter, started to get near to the 80-year threshold with the lease on his garden apartment in Llanbedr. In buying his home two decades ago, the unexpired term was of no relevance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Hunter extended the lease just in the nick of time in July. Hunter and the landlord subsequently settled on sum of £6,000 . If the lease had dropped to less than 80 years, the figure would have escalated by at least £1,000.
In 2012 we were contacted by Mr and Mrs. K Murphy who, having completed a studio apartment in Llanbedr in August 2010. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparative premises in Llanbedr with a long lease were valued around £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease finished in 2076. Considering the 51 years unexpired we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including fees.
Last October we were contacted by Mr and Mrs. R Flores , who completed a basement apartment in Llanbedr in May 2012. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Llanbedr with 100 year plus lease were worth £215,600. The mid-range ground rent payable was £45 billed annually. The lease came to a finish on 20 June 2087. Considering the 62 years remaining we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.