With a residential leasehold premises in Llandegla, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Anyone in Llandegla with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Llandegla with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Leo was the the leasehold proprietor of a high value apartment in Llandegla on the market with a lease of a few days over 61 years left. Leo on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mrs Y Pérez was assigned a lease of a first floor flat in Llandegla in November 2004. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative properties in Llandegla with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish in 2099. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Mr and Mrs. N Carter was assigned a lease of a basement flat in Llandegla in July 2011. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Llandegla with a long lease were valued around £264,000. The mid-range ground rent payable was £60 collected yearly. The lease ran out in 2079. Considering the 53 years unexpired we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.