With a residential leasehold premises in Llanberis, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Residents in Llanberis with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. When a lease has below 80 years outstanding, under the current Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Llanberis leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Last Spring Cameron, started to get close to the eighty-year mark with the lease on his one bedroom flat in Llanberis. In buying his property 19 years previously, the length of the lease was of no relevance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Cameron arranged for a lease extension at the eleventh hour last April. Cameron and the freeholder in the end agreed on an amount of £6,000 . If the lease had fallen below 80 years, the price would have increased by a minimum £1,150.
Mr and Mrs. C Mercier owned a garden apartment in Llanberis in September 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Llanberis with a long lease were worth £267,600. The average amount of ground rent was £65 invoiced monthly. The lease expired in 2093. Taking into account 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of fees.
Last June we were phoned by Dr Poppy Harris , who took over the lease of a one bedroom flat in Llanberis in January 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Similar properties in Llanberis with an extended lease were worth £206,200. The average amount of ground rent was £55 billed monthly. The lease elapsed in 2082. Having 56 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.