Unfortunately that a Llandeilo residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Llandeilo property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most flat owners in Llandeilo will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Llandeilo with more than one hundred years left on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Llandeilo 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.
Gabriel was the the leasehold owner of a 2 bedroom apartment in Llandeilo being sold with a lease of a little over 61 years unexpired. Gabriel informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Winter we were approach by Mrs Y Bernard , who bought a purpose-built flat in Llandeilo in March 2001. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Identical residencies in Llandeilo with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 7 July 2091. Given that there were 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.
Mr and Mrs. L Pérez owned a garden flat in Llandeilo in October 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical premises in Llandeilo with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed on 12 August 2080. Given that there were 55 years left we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.