For anyone whose Llandaff home is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Llandaff with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with handle 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.
George was the the leasehold proprietor of a conversion apartment in Llandaff being sold with a lease of a little over fifty eight years left. George informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last month we were contacted by Dr Max Jackson , who was assigned a lease of a recently refurbished apartment in Llandaff in May 2010. The question was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Llandaff with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed on 13 April 2099. Given that there were 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2010 we were phoned by Ms Gemma Jones who, having moved into a garden apartment in Llandaff in September 1996. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Llandaff with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 billed per annum. The lease ran out on 1 November 2079. Having 53 years left we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.