Llandegla leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Llandegla residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Llandegla you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Llandegla,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llandegla valuers.
Hunter owned a studio apartment in Llandegla being sold with a lease of fraction over 72 years unexpired. Hunter informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Dr Jayden James purchased a garden flat in Llandegla in January 2002. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar homes in Llandegla with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected yearly. The lease ran out in 2100. Considering the 75 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2012 we were phoned by Ms O Rivera who, having completed a basement apartment in Llandegla in March 2006. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Llandegla with 100 year plus lease were valued around £173,800. The average ground rent payable was £65 invoiced monthly. The lease elapsed on 6 May 2080. Taking into account 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.