As the the remaining lease term of a Llandaff North domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Llandaff North will qualify for this right; however a conveyancer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Llandaff North with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
The conveyancing solicitors that we work with handle Llandaff North 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.
Alfie owned a 2 bedroom flat in Llandaff North on the market with a lease of fraction over sixty years outstanding. Alfie on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Spring we were contacted by Dr L Sharif , who purchased a studio apartment in Llandaff North in January 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Llandaff North with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 invoiced yearly. The lease terminated on 13 August 2093. Given that there were 67 years as a residual term we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.
Last month we were e-mailed by Mrs Ellen Smith , who purchased a one bedroom apartment in Llandaff North in August 1998. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Llandaff North with a long lease were valued about £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 12 March 2104. Considering the 78 years left we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.