It’s an underpublicised truth that a Llanberis residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Llanberis property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Most flat owners in Llanberis will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The lawyers that we work with procure Llanberis lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted correspondence with the landlord of her garden flat in Llanberis, Paige commenced the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was finalised in April 2014. The landlord’s fees were kept to an absolute minimum.
Last Winter we were approach by Mr F González , who purchased a studio apartment in Llanberis in November 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Llanberis with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ran out in 2105. Considering the 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last Autumn we were contacted by Ms Millie Turner , who purchased a one bedroom apartment in Llanberis in February 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Llanberis with an extended lease were worth £275,000. The average ground rent payable was £65 billed every twelve months. The lease finished in 2094. Considering the 68 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.