For those whose Llandaff home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Llandaff,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llandaff valuers.
Alexander owned a high value flat in Llandaff being marketed with a lease of a little over sixty years unexpired. Alexander informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Alexander to invoke his statutory right. Alexander procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
In 2011 we were phoned by Mr and Mrs. V Campbell who, having bought a garden apartment in Llandaff in September 2007. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar properties in Llandaff with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease elapsed on 10 April 2100. Taking into account 74 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Mr Jonathan Sánchez took over the lease of a recently refurbished flat in Llandaff in June 2003. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Llandaff with a long lease were in the region of £166,400. The average amount of ground rent was £60 collected per annum. The lease elapsed in 2080. Having 54 years remaining we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.