When it comes to long leasehold premises in Llandaff, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years left. Residents in Llandaff with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once a lease has fewer than eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
Lease extensions in Llandaff can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Llandaff lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael was the the leasehold owner of a 2 bedroom apartment in Llandaff on the market with a lease of a little over 59 years remaining. Michael informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mrs Hollie Khan moved into a one bedroom apartment in Llandaff in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Llandaff with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 billed quarterly. The lease end date was in 2097. Taking into account 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Mr C Murphy moved into a ground floor apartment in Llandaff in August 2004. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative premises in Llandaff with a long lease were valued around £254,200. The average ground rent payable was £60 invoiced yearly. The lease end date was on 28 October 2076. Considering the 51 years unexpired we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.