Llandysul leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Llandysul tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llandysul you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Llandysul with in excess of one hundred years unexpired 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Llandysul lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Edward was the the leasehold proprietor of a 2 bedroom apartment in Llandysul being sold with a lease of a few days over sixty years left. Edward on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were approach by Ms Nicole Michel , who moved into a basement flat in Llandysul in October 2011. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar flats in Llandysul with an extended lease were worth £246,800. The average ground rent payable was £60 billed every twelve months. The lease expired on 8 May 2076. Considering the 50 years left we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including legals.
Mrs J Mercier owned a garden flat in Llandysul in March 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Llandysul with an extended lease were valued around £203,200. The mid-range amount of ground rent was £65 billed yearly. The lease finished in 2087. Considering the 61 years outstanding we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.