Llandrindod Wells leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of 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 would be well advised to check if your lease has between 70 and ninety years remaining. There are good reasons why a Llandrindod Wells leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Llandrindod Wells with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Using our service will provide you enhanced 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Leon, came perilously close to the 80-year mark with the lease on his one bedroom apartment in Llandrindod Wells. In buying his property twenty years previously, the unexpired term was of no relevance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Leon arranged for a lease extension at the eleventh hour in September. Leon and the landlord in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have increased by a minimum £1,125.
Mr Logan Bernard completed a purpose-built apartment in Llandrindod Wells in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Llandrindod Wells with an extended lease were valued around £243,000. The mid-range amount of ground rent was £65 billed quarterly. The lease elapsed in 2088. Given that there were 63 years unexpired we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
Last August we were e-mailed by Mr Liam Lefebvre , who bought a first floor apartment in Llandrindod Wells in September 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Llandrindod Wells with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected annually. The lease concluded in 2077. Taking into account 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus professional charges.