The market value of Llandyrnog leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than 80 years
Leasehold residencies in Llandyrnog with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Llandyrnog leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold owner of a high value apartment in Llandyrnog being marketed with a lease of a few days over sixty years remaining. Alex on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Summer we were approach by Dr Jackson Hall , who completed a one bedroom flat in Llandyrnog in April 2004. The dilemma was if we could estimate the price would be for a ninety year lease extension. Identical properties in Llandyrnog with an extended lease were valued around £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended in 2106. Having 80 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. P Jackson moved into a basement apartment in Llandyrnog in April 1998. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar homes in Llandyrnog with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2095. Having 69 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.