As the length of the unexpired term of a Llandrindod Wells domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Llandrindod Wells will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Llandrindod Wells with more than 100 years left on the lease are often referred to as ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Llandrindod Wells leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ali owned a studio apartment in Llandrindod Wells on the market with a lease of just over 72 years left. Ali on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last July we were phoned by Mr and Mrs. B Morgan , who was assigned a lease of a ground floor apartment in Llandrindod Wells in April 2006. The question was if we could estimate the price would be to extend the lease by ninety years. Identical homes in Llandrindod Wells with a long lease were valued about £295,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expiry date was on 9 July 2100. Taking into account 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
Last Winter we were phoned by Mr and Mrs. W Brooks , who moved into a first floor apartment in Llandrindod Wells in January 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable flats in Llandrindod Wells with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 billed annually. The lease terminated on 23 March 2089. Taking into account 64 years outstanding we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including costs.