The re-sale value of a leasehold property in Llandeilo is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed well before the 80 year mark. Leasehold Reform legislation entitles Llandeilo qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Lease extensions in Llandeilo can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Llandeilo lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Alex, started to get close to the 80-year mark with the lease on his studio apartment in Llandeilo. Having bought his home two decades ago, the unexpired term was of little significance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Alex was able to extend his lease at the eleventh hour in March. Alex and the freeholder in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,000.
In 2012 we were e-mailed by Mr and Mrs. D Nelson who, having purchased a one bedroom flat in Llandeilo in August 1996. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable premises in Llandeilo with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2079. Having 54 years left we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus fees.
Last October we were e-mailed by Mr and Mrs. H Bennett , who bought a ground floor flat in Llandeilo in January 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable flats in Llandeilo with an extended lease were valued around £295,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2099. Considering the 74 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.