Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Llandysul. Clearly, the length of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Llandysul have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Llandysul lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Jacob owned a high value apartment in Llandysul being marketed with a lease of just over 72 years remaining. Jacob on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jacob to exercise his statutory right. Jacob procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. K Howard acquired a basement apartment in Llandysul in June 2011. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical premises in Llandysul with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed on 7 June 2096. Considering the 71 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Christmas we were contacted by Mr N Brown , who owned a one bedroom apartment in Llandysul in January 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical flats in Llandysul with an extended lease were in the region of £254,200. The average ground rent payable was £60 collected every twelve months. The lease end date was on 26 October 2076. Taking into account 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus legals.