Llandaff leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Llandaff residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Llandaff you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Llandaff with more than one hundred years outstanding on the lease are often 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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors 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 conveyancer we work with provide it.
Milo owned a high value apartment in Llandaff being sold with a lease of just over fifty eight years remaining. Milo on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were phoned by Mrs Francesca Laurent who, having moved into a purpose-built apartment in Llandaff in June 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Llandaff with an extended lease were worth £290,000. The average amount of ground rent was £60 billed monthly. The lease came to a finish in 2106. Given that there were 80 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
Last year we were contacted by Mr Blake Lefèvre , who took over the lease of a purpose-built apartment in Llandaff in July 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Llandaff with an extended lease were in the region of £200,800. The average ground rent payable was £65 billed per annum. The lease terminated on 17 January 2086. Considering the 60 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus expenses.