When it comes to long leasehold property in Llanddulas, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Llanddulas with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Llanddulas with over one hundred 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Llanddulas lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
16 months ago Jacob, came very close to the 80-year threshold with the lease on his first floor flat in Llanddulas. In buying his home twenty years previously, the length of the lease was of minimal interest. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Jacob extended the lease just under the wire in August. Jacob and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If the lease had slipped lower than eighty years, the figure would have gone up by at least £875.
In 2013 we were contacted by Mr and Mrs. C Ricardo who, having was assigned a lease of a basement apartment in Llanddulas in February 2002. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Llanddulas with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed on 7 June 2103. Taking into account 78 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
In 2011 we were e-mailed by Mr and Mrs. K Martinez who, having was assigned a lease of a ground floor apartment in Llanddulas in September 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar properties in Llanddulas with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced per annum. The lease ended in 2092. Taking into account 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.