With a domestic leasehold property in Llandaff, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Llandaff with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under eighty years remaining, under the current Act the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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.|
Irrespective 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 experience and the close ties they enjoy with Llandaff valuers.
Callum was the the leasehold owner of a high value apartment in Llandaff being marketed with a lease of just over 61 years unexpired. Callum on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Autumn we were e-mailed by Mr Luca Murphy , who bought a one bedroom flat in Llandaff in September 2006. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative residencies in Llandaff with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2076. Considering the 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
Mr D Lefèvre bought a purpose-built flat in Llandaff in February 2012. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Llandaff with a long lease were worth £242,600. The average amount of ground rent was £45 billed every twelve months. The lease terminated in 2087. Given that there were 67 years unexpired we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.