Llandegla leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Llandegla will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Llandegla with over one hundred years unexpired 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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. |
Engaging our service gives you better control over the value of your Llandegla leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a high value flat in Llandegla on the market with a lease of just over 72 years unexpired. Elijah informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2009 we were phoned by Mrs E Rose who, having completed a basement apartment in Llandegla in October 2003. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable properties in Llandegla with an extended lease were worth £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended on 20 June 2087. Given that there were 61 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including fees.
In 2010 we were approached by Mr Riley Morel who, having took over the lease of a recently refurbished apartment in Llandegla in January 1995. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Llandegla with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish on 18 March 2098. Taking into account 72 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.