Llanbradach Lease Extension - Free Consultation

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Top reasons for Llanbradach lease extension


Top reasons for lease extension now:

Increase your lease and increase your Llanbradach property value

Llanbradach leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher amount will be payable. Flat owners in Llanbradach will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.

Llanbradach property with a lease extension is almost the same value as a freehold

Leasehold residencies in Llanbradach with more than one hundred years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not lend on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
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.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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.

What makes us experts in Llanbradach lease extensions?

Irrespective of whether you are a tenant or a landlord in Llanbradach,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanbradach valuers.

Llanbradach Lease Extension Case Summaries:

Jasmine, Llanbradach, Caerphilly,

In the wake of eight months of lengthy correspondence with the freeholder of her basement apartment in Llanbradach, Jasmine commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work was concluded in October 2008. The landlord’s charges were kept to an absolute minimum.

Llanbradach case:

Last Spring we were called by Dr Charlie Thomas , who moved into a first floor flat in Llanbradach in June 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable premises in Llanbradach with a long lease were in the region of £215,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended in 2087. Having 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus legals.

Llanbradach case:

Last Winter we were called by Mr and Mrs. T Gray , who purchased a studio apartment in Llanbradach in June 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar premises in Llanbradach with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed on 25 November 2098. Given that there were 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.