Chances are that if you own a flat in Llandeilo you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Llandeilo can be a difficult process. We recommend you get guidance from a conveyancer 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 in-depth market knowledge dealing with Llandeilo lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a conversion apartment in Llandeilo on the market with a lease of a few days over 59 years left. Teddy informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Mr Austin Roux , who purchased a one bedroom apartment in Llandeilo in August 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable residencies in Llandeilo with a long lease were worth £243,000. The average ground rent payable was £65 billed monthly. The lease end date was in 2089. Having 63 years left we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.
Last Christmas we were phoned by Mr and Mrs. I Hall , who completed a purpose-built flat in Llandeilo in April 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Llandeilo with a long lease were worth £181,600. The average amount of ground rent was £55 billed yearly. The lease terminated in 2078. Given that there were 52 years unexpired we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.