Llandrindod Wells leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Llandrindod Wells tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llandrindod Wells you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Llandrindod Wells leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llandrindod Wells valuers.
Kai owned a conversion flat in Llandrindod Wells being sold with a lease of a few days over 61 years outstanding. Kai informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mr and Mrs. O Miller moved into a basement apartment in Llandrindod Wells in July 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Llandrindod Wells with an extended lease were in the region of £210,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 8 August 2106. Given that there were 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. K Hill purchased a basement flat in Llandrindod Wells in March 2009. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Llandrindod Wells with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 9 January 2095. Given that there were 69 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.