Llandrindod Wells leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Llandrindod Wells enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Llandrindod Wells you must investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Llandrindod Wells leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent 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 |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyers that we work with undertake Llandrindod Wells 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.
Last year Aiden, came dangerously close to the eighty-year threshold with the lease on his ground floor apartment in Llandrindod Wells. Having purchased his home two decades ago, the lease term was of no bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. Aiden extended the lease at the eleventh hour in August. Aiden and the freeholder in the end agreed on sum of £6,000 . If the lease had fallen to less than 80 years, the premium would have gone up by at least £1,050.
In 2009 we were called by Dr T Phillips who, having moved into a ground floor apartment in Llandrindod Wells in November 2011. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical flats in Llandrindod Wells with an extended lease were valued about £191,400. The average amount of ground rent was £55 collected yearly. The lease ran out in 2080. Considering the 54 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 not including legals.
Last Christmas we were contacted by Dr U Ward , who moved into a one bedroom flat in Llandrindod Wells in February 2002. The question was if we could estimate the price would likely be to extend the lease by an additional years. Comparable residencies in Llandrindod Wells with a long lease were worth £295,000. The average ground rent payable was £45 invoiced annually. The lease elapsed on 10 May 2100. Taking into account 74 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.