When it comes to long leasehold property in Llanbrynmair, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may 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 increases markedly especially when there are less than eighty years remaining. Leasehold owners in Llanbrynmair with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under 80 years outstanding, under the current Act the freeholder is entitled to calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you better control over the value of your Llanbrynmair leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold owner of a high value apartment in Llanbrynmair being marketed with a lease of just over fifty eight years unexpired. Dylan on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Ms Rosie Gunderson completed a first floor flat in Llanbrynmair in May 1997. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Identical homes in Llanbrynmair with a long lease were valued around £295,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2099. Given that there were 74 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2010 we were contacted by Mr A Martin who, having took over the lease of a first floor flat in Llanbrynmair in May 2009. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Llanbrynmair with an extended lease were in the region of £243,000. The average amount of ground rent was £65 billed per annum. The lease ran out in 2088. Considering the 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including legals.