Chances are that where you own a flat in Llandovery you actually own a long leasehold interest over your property
Leasehold premises in Llandovery with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Llandovery can be a difficult process. We recommend you secure guidance from a lawyer 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 Llandovery lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan was the the leasehold proprietor of a conversion apartment in Llandovery on the market with a lease of fraction over 72 years remaining. Evan informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were approached by Mr and Mrs. G Morgan who, having bought a recently refurbished apartment in Llandovery in October 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Llandovery with a long lease were worth £275,000. The mid-range ground rent payable was £65 collected monthly. The lease finished in 2093. Given that there were 68 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Last Spring we were approach by Ms Gemma Mason , who owned a one bedroom flat in Llandovery in March 2002. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Llandovery with 100 year plus lease were valued around £208,600. The average amount of ground rent was £60 billed annually. The lease ended on 13 May 2082. Having 57 years left we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.