The market value of a leasehold property in Llanddulas is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded well before the eighty year mark. Current legislation entitles Llanddulas qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Llanddulas with more than 100 years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanddulas can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Llanddulas lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her two bedroom flat in Llanddulas, Caitlin initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was concluded in August 2011. The landlord’s charges were restricted to below 700 GBP.
In 2012 we were e-mailed by Dr Chelsea Bertrand who, having purchased a studio apartment in Llanddulas in January 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Llanddulas with an extended lease were valued about £223,400. The average ground rent payable was £60 billed quarterly. The lease lapsed in 2085. Considering the 59 years left we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including professional charges.
Dr Chelsea Laurent purchased a newly refurbished flat in Llanddulas in July 2010. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical flats in Llanddulas with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 20 October 2105. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.