Llandaff leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Llandaff will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancers that we work with procure Llandaff 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 conveyancing solicitor we work with provide it.
In the wake of 9 months of unsuccessful discussions with the landlord of her two bedroom flat in Llandaff, Francesca started the lease extension process as the 80 year threshold was swiftly advancing. The legal work completed in July 2005. The freeholder’s costs were restricted to a tad over 700 pounds.
Mr Gabriel Reed completed a ground floor apartment in Llandaff in January 2010. The question was if we could estimate the premium would be to prolong the lease by an additional years. Identical properties in Llandaff with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2102. Given that there were 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. K Turner owned a ground floor flat in Llandaff in January 1995. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable residencies in Llandaff with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 billed quarterly. The lease lapsed in 2082. Given that there were 56 years unexpired we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including costs.