The closer a domestic lease in Llandudno nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Llandudno will qualify for this right; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Llandudno can be a difficult process. We recommend you procure professional help 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 dealing with Llandudno lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her ground floor flat in Llandudno, Katherine commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was concluded in September 2006. The landlord’s fees were negotiated to slightly above 500 pounds.
Last July we were contacted by Mrs Rachel Harris , who completed a newly refurbished apartment in Llandudno in June 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar flats in Llandudno with a long lease were worth £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease ran out in 2091. Considering the 66 years outstanding we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus professional charges.
Last year we were phoned by Dr Yasmin Bernard , who moved into a garden apartment in Llandudno in November 2011. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative premises in Llandudno with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 16 January 2080. Considering the 55 years as a residual term we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.