When it comes to domestic leasehold property in Llanelli, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Leasehold owners in Llanelli with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the relevant Act the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Llanelli can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Llanelli lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold owner of a high value flat in Llanelli on the market with a lease of fraction over 61 years left. Isaac on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Winter we were phoned by Mr and Mrs. H Ward , who owned a ground floor apartment in Llanelli in March 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparative properties in Llanelli with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 collected per annum. The lease lapsed in 2078. Having 52 years remaining we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus fees.
Last Winter we were approach by Mr Daniel Martin , who took over the lease of a purpose-built flat in Llanelli in November 1997. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar premises in Llanelli with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 6 January 2098. Given that there were 72 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.