Llandudno Junction leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Llandudno Junction will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Llandudno Junction with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Lease extensions in Llandudno Junction can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Llandudno Junction lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca was the the leasehold owner of a high value flat in Llandudno Junction being sold with a lease of just over 59 years left. Luca informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder 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 £125 per annum. No ground rent would be due on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. H Thomas bought a one bedroom flat in Llandudno Junction in November 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Llandudno Junction with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 billed annually. The lease elapsed in 2083. Considering the 57 years left we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
In 2010 we were e-mailed by Dr Y Bernard who, having bought a ground floor flat in Llandudno Junction in April 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Llandudno Junction with a long lease were valued around £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2094. Having 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.