When it comes to long leasehold premises in Llandyrnog, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Llandyrnog with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Llandyrnog with over 100 years remaining 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Llandyrnog,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llandyrnog valuers.
Twenty four months ago Michael, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Llandyrnog. In buying his flat twenty years ago, the unexpired term was of minimal bearing. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Michael arranged for a lease extension just under the wire in August. Michael and the landlord ultimately settled on a premium of £5,000 . If the lease had slid lower than 80 years, the premium would have increased by at least £925.
Dr Noah Lee acquired a studio flat in Llandyrnog in September 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative properties in Llandyrnog with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease ended in 2076. Taking into account 51 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
Last Christmas we were called by Ms W Martinez , who took over the lease of a first floor apartment in Llandyrnog in August 2008. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative properties in Llandyrnog with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expiry date was in 2096. Having 71 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.