Llanelli leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% 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 to the property. Leasehold owners in Llanelli will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Llanelli,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanelli valuers.
Last Christmas Jude, came seriously close to the eighty-year threshold with the lease on his two bedroom apartment in Llanelli. Having bought his property two decades ago, the lease term was of no significance. Luckily, he recognised he needed to take steps soon on a lease extension. Jude extended the lease at the eleventh hour in May. Jude and the freeholder subsequently settled on an amount of £6,000 . If the lease had slipped lower than 80 years, the sum would have increased by a minimum £875.
In 2011 we were approached by Dr Y Norbert who, having was assigned a lease of a garden apartment in Llanelli in October 1998. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Llanelli with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed on 20 November 2098. Given that there were 73 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2014 we were approached by Ms I Cox who, having acquired a ground floor flat in Llanelli in November 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative premises in Llanelli with a long lease were in the region of £235,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out on 18 September 2087. Considering the 62 years unexpired we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.