Llandough leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Llandough tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Llandough you would be well advised to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Llandough with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Llandough can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 Llandough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Alfie, came dangerously near to the 80-year threshold with the lease on his first floor flat in Llandough. Having purchased his property twenty years previously, the length of the lease was of little concern. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Alfie was able to extend his lease just under the wire in April. Alfie and the landlord in the end settled on the final figure of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,075.
Last Christmas we were e-mailed by Dr Jodie Davies , who moved into a purpose-built flat in Llandough in March 2008. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Llandough with an extended lease were valued about £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed on 19 January 2077. Given that there were 52 years remaining we approximated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus legals.
In 2010 we were e-mailed by Ms C Pérez who, having completed a one bedroom apartment in Llandough in June 2009. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Llandough with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 invoiced yearly. The lease termination date was on 7 October 2088. Considering the 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus legals.