It’s an underpublicised truth 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 taken for granted in the first few years due to the loss of value being disguised by increases in the Llandeilo property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Llandeilo will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society |
Lease extensions in Llandeilo can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Omar was the the leasehold proprietor of a conversion flat in Llandeilo on the market with a lease of just over 72 years left. Omar informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Autumn we were e-mailed by Dr N Nguyen , who took over the lease of a purpose-built apartment in Llandeilo in April 2009. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Llandeilo with 100 year plus lease were worth £275,000. The average ground rent payable was £65 billed every twelve months. The lease concluded in 2094. Having 68 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
Dr W Reed moved into a ground floor flat in Llandeilo in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar flats in Llandeilo with a long lease were valued about £208,600. The average amount of ground rent was £60 billed every twelve months. The lease lapsed on 28 August 2083. Having 57 years remaining we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.