Unfortunately that a Llandaff North residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Llandaff North property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Llandaff North will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors that we work with undertake 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.
James was the the leasehold owner of a conversion apartment in Llandaff North on the market with a lease of fraction over 59 years unexpired. James on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. D Bell acquired a purpose-built flat in Llandaff North in April 2012. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable homes in Llandaff North with a long lease were worth £246,800. The average amount of ground rent was £60 billed monthly. The lease finished on 24 March 2076. Given that there were 50 years unexpired we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 plus fees.
In 2012 we were called by Ms Anna Martin who, having was assigned a lease of a basement apartment in Llandaff North in September 2006. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Llandaff North with a long lease were valued around £208,200. The average ground rent payable was £65 invoiced quarterly. The lease finished on 3 November 2087. Given that there were 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.