Chances are that where you own a flat in Llanberis you actually own a long leasehold interest over your property
Leasehold properties in Llanberis with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Llanberis,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanberis valuers.
Joshua was the the leasehold owner of a high value flat in Llanberis being sold with a lease of just over 59 years unexpired. Joshua on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2010 we were contacted by Mr Luke Thompson who, having owned a newly refurbished flat in Llanberis in February 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Llanberis with a long lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed annually. The lease ran out in 2079. Considering the 53 years remaining we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.
In 2014 we were e-mailed by Mr and Mrs. S Morgan who, having purchased a purpose-built flat in Llanberis in November 1999. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable premises in Llanberis with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 17 April 2099. Having 73 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.