It’s an underpublicised truth that a Llandysul residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Llandysul property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Llandysul will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Llandysul with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Llandysul,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llandysul valuers.
Felix owned a high value flat in Llandysul being sold with a lease of a few days over 61 years unexpired. Felix informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were contacted by Dr M Jones , who owned a garden apartment in Llandysul in July 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Llandysul with an extended lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease ended on 27 July 2102. Taking into account 76 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2011 we were approached by Ms Sophie Hall who, having owned a studio apartment in Llandysul in March 2003. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Llandysul with a long lease were valued around £176,200. The average amount of ground rent was £65 collected quarterly. The lease came to a finish on 6 July 2082. Considering the 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of costs.