Llandudno Junction leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Llandudno Junction residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Llandudno Junction you must see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Llandudno Junction flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Llandudno Junction with more than 100 years left on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake Llandudno Junction lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the landlord of her studio flat in Llandudno Junction, Francesca initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was concluded in July 2011. The landlord’s charges were restricted to below 700 pounds.
Last Winter we were approach by Mr and Mrs. R Moore , who moved into a studio flat in Llandudno Junction in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Llandudno Junction with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired on 15 February 2094. Considering the 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Mr and Mrs. W Harris moved into a first floor flat in Llandudno Junction in April 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Llandudno Junction with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished in 2105. Having 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.