On the balance of probabilities if you own a flat in Llandysul you actually own a long leasehold interest over your property
Leasehold premises in Llandysul with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
In 2014 Leo, came perilously near to the eighty-year threshold with the lease on his basement apartment in Llandysul. Having purchased his property two decades ago, the length of the lease was of little importance. Thankfully, he noticed he needed to take action soon on Extending the lease. Leo extended the lease at the eleventh hour in January. Leo and the freeholder via the management company eventually settled on a premium of £5,500 . If the lease had descended lower than eighty years, the sum would have increased by at least £950.
Last Summer we were e-mailed by Mr and Mrs. R Wilson , who owned a one bedroom apartment in Llandysul in March 2003. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical flats in Llandysul with an extended lease were in the region of £220,400. The mid-range ground rent payable was £45 collected monthly. The lease terminated in 2090. Having 64 years outstanding we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.
Last May we were e-mailed by Mrs Zoe Bennett , who was assigned a lease of a studio flat in Llandysul in November 2005. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative flats in Llandysul with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired on 16 February 2101. Considering the 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.