As the the remaining lease term of a Llanbrynmair residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Llanbrynmair will qualify for this right; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Llanbrynmair 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 lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built flat in Llanbrynmair, Katherine started the lease extension process as the 80 year deadline was rapidly nearing. The lease extension completed in June 2007. The landlord’s fees were negotiated to under 450 GBP.
Last Christmas we were phoned by Mr and Mrs. H Laurent , who purchased a purpose-built apartment in Llanbrynmair in June 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Llanbrynmair with 100 year plus lease were worth £240,600. The average ground rent payable was £60 collected monthly. The lease came to a finish on 16 November 2087. Having 62 years remaining we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.
Mr D Harris owned a ground floor apartment in Llanbrynmair in February 2011. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Similar premises in Llanbrynmair with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 collected yearly. The lease expiry date was on 18 April 2076. Taking into account 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.