The closer a domestic lease in Llandegla nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Llandegla will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Llandegla with more than 100 years left 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 purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with handle Llandegla 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.
Kian owned a conversion flat in Llandegla being sold with a lease of a few days over 61 years remaining. Kian on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Winter we were called by Mrs Abbie Michel , who acquired a purpose-built flat in Llandegla in July 2000. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in Llandegla with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced annually. The lease ended in 2092. Given that there were 66 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Last Summer we were contacted by Dr Natalie Thomas , who bought a one bedroom apartment in Llandegla in February 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar residencies in Llandegla with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired on 25 September 2103. Having 77 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.