Llanelli leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in Llanelli will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Llanelli,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanelli valuers.
Off the back of unsuccessful correspondence with the landlord of her purpose-built apartment in Llanelli, Gemma started the lease extension process as the 80 year mark was swiftly coming. The lease extension was finalised in July 2011. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. Y Miller moved into a ground floor apartment in Llanelli in July 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Identical residencies in Llanelli with an extended lease were valued about £233,200. The average ground rent payable was £60 billed yearly. The lease ended on 4 May 2086. Given that there were 61 years outstanding we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including fees.
In 2012 we were called by Dr Lydia Pérez who, having was assigned a lease of a basement apartment in Llanelli in May 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Llanelli with 100 year plus lease were worth £166,800. The average amount of ground rent was £50 billed monthly. The lease ran out on 11 September 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.