When it comes to domestic leasehold property in Llandegla, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years 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 may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years left. Anyone in Llandegla with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has less than 80 years remaining, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors 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.
Following protracted discussions with the landlord of her leasehold flat in Llandegla, Alisha initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was finalised in July 2006. The freeholder’s costs were negotiated to under five hundred pounds.
Mr and Mrs. E Bennett purchased a studio flat in Llandegla in July 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Llandegla with 100 year plus lease were worth £166,400. The average ground rent payable was £60 collected annually. The lease ended on 11 May 2080. Given that there were 54 years left we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including professional charges.
Dr Leon Clark completed a studio flat in Llandegla in September 2009. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Llandegla with an extended lease were valued about £232,800. The mid-range amount of ground rent was £45 billed annually. The lease concluded on 4 June 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.