The closer a residential lease in Llandysul nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Llandysul will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers 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.
Finley was the the leasehold owner of a high value flat in Llandysul being sold with a lease of a little over 72 years remaining. Finley on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Mr Arthur King bought a purpose-built flat in Llandysul in September 2010. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable properties in Llandysul with an extended lease were worth £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 15 October 2077. Considering the 52 years outstanding we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of professional charges.
In 2013 we were called by Ms A Vincent who, having completed a purpose-built flat in Llandysul in March 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical flats in Llandysul with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 billed annually. The lease end date was on 27 February 2088. Having 63 years outstanding we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.