The market value of a leasehold property in Llandough is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year threshold. Current legislation entitles Llandough qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| Chelsea Building Society | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with undertake Llandough 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 conveyancer we work with provide it.
During the course of the last few months David, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Llandough. Having purchased his property two decades ago, the unexpired term was of little bearing. As luck would have it, he noticed he needed to take steps soon on a lease extension. David extended the lease just under the wire in August. David and the freeholder in the end settled on a premium of £5,500 . If the lease had fallen to less than eighty years, the figure would have gone up by at least £1,050.
Mrs W Laurent purchased a garden apartment in Llandough in May 2008. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Llandough with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 26 July 2080. Considering the 54 years outstanding we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.
Dr E Cooper owned a one bedroom flat in Llandough in June 2002. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar flats in Llandough with 100 year plus lease were worth £227,800. The mid-range ground rent payable was £45 collected yearly. The lease ran out in 2091. Taking into account 65 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.