Llanelli leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Llanelli enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Llanelli you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Llanelli leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Llanelli with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Llanelli can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge 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.
Trailing lengthy discussions with the landlord of her ground floor flat in Llanelli, Rhiannon started the lease extension process as the 80 year deadline was fast advancing. The legal work was finalised in May 2006. The freeholder’s fees were negotiated to under 700 GBP.
Last October we were approach by Mr and Mrs. U Simon , who bought a garden flat in Llanelli in June 2004. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable homes in Llanelli with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed on 23 February 2080. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of costs.
Mr and Mrs. M Roux was assigned a lease of a ground floor apartment in Llanelli in September 2008. We are asked if we could estimate the price would be for a ninety year lease extension. Identical flats in Llanelli with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed yearly. The lease lapsed on 28 November 2100. Taking into account 74 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.