Llanddulas residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Llanddulas leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Dylan, came very close to the eighty-year mark with the lease on his studio apartment in Llanddulas. In buying his property two decades ago, the length of the lease was of no interest. Thankfully, he became aware that he needed to take action soon on a lease extension. Dylan arranged for a lease extension at the eleventh hour last April. Dylan and the freeholder eventually settled on a premium of £6,000 . If the lease had fallen below eighty years, the premium would have gone up by at least £950.
Last month we were approach by Mr James Walker , who owned a purpose-built apartment in Llanddulas in May 2003. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Llanddulas with an extended lease were worth £285,000. The average amount of ground rent was £45 collected annually. The lease concluded on 16 March 2097. Considering the 71 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Dr Imogen Martínez bought a first floor flat in Llanddulas in November 2008. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Llanddulas with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 billed per annum. The lease elapsed on 9 January 2086. Considering the 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including professional charges.