Llanbedr leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Llanbedr will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Llanbedr lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Luke, came seriously close to the 80-year mark with the lease on his leasehold flat in Llanbedr. Having bought his property two decades ago, the length of the lease was of little concern. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Luke arranged for a lease extension just ahead of time last January. Luke and the landlord eventually agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by at least £925.
Last Summer we were e-mailed by Mr and Mrs. D Vincent , who moved into a purpose-built flat in Llanbedr in March 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Llanbedr with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired on 7 October 2095. Considering the 70 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Mr R Anderson acquired a basement apartment in Llanbedr in March 1996. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Llanbedr with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated in 2075. Taking into account 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus fees.