The market value of Llanbedr leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Llanbedr can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Llanbedr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her purpose-built apartment in Llanbedr, Abigail started the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in July 2008. The landlord’s fees were restricted to slightly above 700 GBP.
In 2011 we were approached by Mr and Mrs. B Leroy who, having completed a garden apartment in Llanbedr in February 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Llanbedr with a long lease were worth £191,000. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish on 2 July 2083. Having 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including expenses.
Mr and Mrs. L Bertrand was assigned a lease of a ground floor apartment in Llanbedr in February 1998. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Llanbedr with a long lease were worth £250,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed in 2094. Taking into account 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.