Llanbedrog residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Llanbedrog with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Llanbedrog leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a conversion apartment in Llanbedrog being marketed with a lease of a little over sixty years remaining. Finn informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and secured satisfactory resolution informally and sell the flat.
In 2014 we were called by Mr Harrison Davis who, having purchased a ground floor apartment in Llanbedrog in July 2005. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Llanbedrog with an extended lease were valued about £210,000. The average amount of ground rent was £50 billed monthly. The lease expired in 2106. Having 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Last Christmas we were approach by Mr and Mrs. M Petit , who owned a purpose-built apartment in Llanbedrog in March 2005. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative residencies in Llanbedrog with a long lease were in the region of £275,000. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2095. Given that there were 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.