Llanddulas leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Llanddulas enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Llanddulas you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Llanddulas leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Llanddulas with over 100 years unexpired 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Llanddulas,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanddulas valuers.
Connor was the the leasehold owner of a high value flat in Llanddulas being sold with a lease of a little over 59 years outstanding. Connor on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2010 we were called by Mr and Mrs. C Hernández who, having purchased a studio flat in Llanddulas in January 2008. We are asked if we could approximate the price could be to prolong the lease by ninety years. Similar premises in Llanddulas with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease ran out in 2078. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
Dr H Brown completed a basement flat in Llanddulas in March 2006. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable residencies in Llanddulas with a long lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2098. Having 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.