Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Llandudno Junction. Clearly, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Llandudno Junction have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give due deliberation before delaying your Llandudno Junction lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
Engaging our service will provide you increased control over the value of your Llandudno Junction leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Logan was the the leasehold owner of a conversion apartment in Llandudno Junction on the market with a lease of a little over 61 years remaining. Logan informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last month we were phoned by Mr and Mrs. V Howard , who owned a purpose-built apartment in Llandudno Junction in July 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Llandudno Junction with 100 year plus lease were worth £210,600. The mid-range ground rent payable was £45 invoiced per annum. The lease finished on 2 April 2087. Taking into account 62 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.
Mr and Mrs. N Torres bought a first floor apartment in Llandudno Junction in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Llandudno Junction with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 11 February 2098. Taking into account 73 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.