Unfortunately that a Llandrindod Wells residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Llandrindod Wells property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Llandrindod Wells will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Llandrindod Wells with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Llandrindod Wells,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llandrindod Wells valuers.
Last Autumn Aaron, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Llandrindod Wells. Having bought his flat two decades ago, the unexpired term was of little concern. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Aaron arranged for a lease extension at the eleventh hour last January. Aaron and the landlord ultimately settled on a premium of £6,000 . If the lease had gone lower than eighty years, the price would have escalated by at least £900.
In 2009 we were phoned by Mr and Mrs. O González who, having moved into a one bedroom flat in Llandrindod Wells in June 2002. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar residencies in Llandrindod Wells with an extended lease were worth £174,200. The average amount of ground rent was £55 invoiced per annum. The lease termination date was in 2076. Having 51 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.
Last month we were called by Ms E Norbert , who bought a one bedroom apartment in Llandrindod Wells in May 2001. The question was if we could approximate the price could be to extend the lease by a further 90 years. Identical premises in Llandrindod Wells with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease end date was in 2096. Having 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.