The market value of a leasehold property in Llandyrnog depends on how long the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be finalised in advance of the 80 year cut off point. Statute entitles Llandyrnog qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Llandyrnog with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Llandyrnog,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llandyrnog valuers.
Jude was the the leasehold owner of a high value apartment in Llandyrnog being sold with a lease of a little over fifty eight years left. Jude informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Last Summer we were e-mailed by Mr and Mrs. F Bennett , who owned a studio flat in Llandyrnog in April 2001. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Llandyrnog with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 collected annually. The lease came to a finish on 28 September 2088. Given that there were 63 years outstanding we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.
Last Christmas we were called by Mrs K Jackson , who purchased a newly refurbished flat in Llandyrnog in February 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable residencies in Llandyrnog with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected per annum. The lease finished in 2077. Given that there were 52 years as a residual term we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.