Unfortunately that a Llandyrnog residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Llandyrnog property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Llandyrnog will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Llandyrnog can be a difficult process. We recommend you secure professional help from a conveyancer 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 in-depth market knowledge procuring Llandyrnog lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry owned a studio flat in Llandyrnog on the market with a lease of a few days over 59 years remaining. Henry on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. I Watson who, having bought a newly refurbished apartment in Llandyrnog in May 2003. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparative flats in Llandyrnog with an extended lease were valued about £191,400. The average amount of ground rent was £55 billed per annum. The lease terminated in 2080. Considering the 54 years remaining we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including expenses.
Dr Jacob Morel moved into a one bedroom flat in Llandyrnog in September 2010. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparative premises in Llandyrnog with a long lease were in the region of £295,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed in 2100. Considering the 74 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.