Unfortunately that a Llanbedrog residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Llanbedrog property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Llanbedrog will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Llanbedrog leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her one bedroom apartment in Llanbedrog, Jordan started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction was concluded in February 2005. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. N Collins , who purchased a first floor flat in Llanbedrog in August 2012. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Llanbedrog with an extended lease were valued about £285,000. The average amount of ground rent was £45 collected annually. The lease ran out on 19 August 2096. Taking into account 71 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last Summer we were contacted by Mrs Daisy Moore , who acquired a recently refurbished apartment in Llanbedrog in February 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical premises in Llanbedrog with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease expired on 9 October 2085. Having 60 years left we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus expenses.