As the length of the unexpired term of a Llanbedr domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Llanbedr will qualify for this right; nevertheless a lawyer can confirm if you qualify for a lease extension. 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.
Leasehold premises in Llanbedr with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Llanbedr,the lease extension lawyers 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.
Last October Max, came critically near to the eighty-year threshold with the lease on his studio flat in Llanbedr. Having bought his property two decades ago, the unexpired term was of minimal significance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Max extended the lease just under the wire last April. Max and the freeholder via the managing agents in the end agreed on an amount of £5,500 . If the lease had gone below 80 years, the amount would have gone up by at least £850.
In 2010 we were phoned by Mr Alex Brown who, having moved into a garden apartment in Llanbedr in March 1997. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative properties in Llanbedr with a long lease were worth £264,000. The average ground rent payable was £60 collected every twelve months. The lease terminated in 2079. Given that there were 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of legals.
In 2011 we were called by Dr Dexter Moreau who, having acquired a purpose-built flat in Llanbedr in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Llanbedr with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 5 July 2090. Given that there were 64 years outstanding we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of professional charges.