Unfortunately that a Llandysul residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Llandysul property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Most leasehold owners in Llandysul will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Llandysul with in excess of 100 years left 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 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.
Aaron was the the leasehold proprietor of a conversion flat in Llandysul on the market with a lease of just over 61 years left. Aaron on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2010 we were called by Mr and Mrs. J James who, having bought a recently refurbished apartment in Llandysul in August 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative flats in Llandysul with a long lease were in the region of £210,600. The average amount of ground rent was £45 billed yearly. The lease termination date was in 2088. Given that there were 62 years unexpired we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus fees.
Last Winter we were called by Mrs Amelia Ali , who bought a ground floor apartment in Llandysul in September 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical flats in Llandysul with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated in 2099. Given that there were 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.