Llanbedrgoch leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher amount will be payable. Leasehold owners in Llanbedrgoch will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Llanbedrgoch leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Edward was the the leasehold proprietor of a 2 bedroom apartment in Llanbedrgoch being sold with a lease of just over fifty eight years left. Edward informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Edward to exercise his statutory right. Edward procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Amber François owned a ground floor apartment in Llanbedrgoch in June 2008. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Llanbedrgoch with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2085. Having 60 years remaining we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
In 2013 we were e-mailed by Dr Lewis Thompson who, having acquired a basement apartment in Llanbedrgoch in March 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Llanbedrgoch with a long lease were worth £210,000. The average amount of ground rent was £50 collected every twelve months. The lease expired on 28 October 2105. Taking into account 80 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.