Unfortunately that a Llanelli residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Llanelli property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Llanelli will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Llanelli 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.
Riley was the the leasehold proprietor of a high value flat in Llanelli on the market with a lease of just over fifty eight years outstanding. Riley on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last Autumn we were phoned by Mr Andrew Anderson , who took over the lease of a basement apartment in Llanelli in March 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Llanelli with 100 year plus lease were in the region of £218,400. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded on 6 May 2085. Given that there were 59 years left we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of expenses.
In 2013 we were phoned by Dr W Green who, having took over the lease of a garden flat in Llanelli in October 2001. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative homes in Llanelli with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease end date was on 6 August 2105. Considering the 79 years unexpired we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.