Chances are that where you own a flat in Llanddulas you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Llanddulas leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold proprietor of a conversion apartment in Llanddulas being sold with a lease of a few days over 72 years outstanding. Kian informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last Winter we were called by Mr and Mrs. M Moreau , who was assigned a lease of a first floor flat in Llanddulas in November 2003. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Llanddulas with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease ended on 6 September 2079. Given that there were 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including fees.
In 2009 we were called by Ms Courtney David who, having bought a ground floor apartment in Llanddulas in January 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Llanddulas with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish on 25 May 2099. Taking into account 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.