There is no doubt about it a leasehold flat or house in Llandeilo is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Llandeilo will qualify for this right; that being said a lawyer will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Llandeilo with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
Using our service gives you enhanced control over the value of your Llandeilo leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Sebastian, started to get close to the 80-year threshold with the lease on his leasehold flat in Llandeilo. In buying his property 18 years previously, the unexpired term was of no interest. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Sebastian arranged for a lease extension at the eleventh hour last May. Sebastian and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If the lease had descended lower than eighty years, the premium would have escalated by at least £1,050.
Mr and Mrs. P Simon completed a one bedroom apartment in Llandeilo in May 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Llandeilo with a long lease were worth £210,000. The average ground rent payable was £50 billed quarterly. The lease expired on 14 February 2106. Having 80 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2009 we were called by Dr O Murphy who, having bought a garden apartment in Llandeilo in September 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical flats in Llandeilo with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out in 2095. Taking into account 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.