The market value of Llanfairfechan leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Llanfairfechan with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset 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 Llanfairfechan can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 Llanfairfechan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jude, came perilously near to the eighty-year mark with the lease on his two bedroom flat in Llanfairfechan. In buying his home two decades ago, the unexpired term was of minimal bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Jude arranged for a lease extension just in the nick of time in July. Jude and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £850.
In 2009 we were approached by Dr Poppy Davies who, having took over the lease of a studio flat in Llanfairfechan in November 1996. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative premises in Llanfairfechan with a long lease were in the region of £171,800. The average ground rent payable was £55 collected yearly. The lease came to a finish on 3 June 2076. Given that there were 50 years unexpired we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
Mr I Alexander purchased a first floor flat in Llanfairfechan in October 1996. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Llanfairfechan with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 billed annually. The lease terminated in 2096. Given that there were 70 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.