Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Llanfairpwllgwyngyll. Inevitably, the period of lease left reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Llanfairpwllgwyngyll have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give due attention before delaying your Llanfairpwllgwyngyll lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Llanfairpwllgwyngyll can be a difficult process. We recommend you obtain professional help from a conveyancer 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 dealing with Llanfairpwllgwyngyll lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Milo, came precariously near to the eighty-year threshold with the lease on his two bedroom flat in Llanfairpwllgwyngyll. In buying his flat two decades ago, the length of the lease was of little importance. As luck would have it, he became aware that he would imminently be paying an inflated amount for a lease extension. Milo arranged for a lease extension just under the wire in May. Milo and the landlord subsequently settled on an amount of £5,000 . If the lease had slipped lower than eighty years, the amount would have gone up by a minimum £1,125.
In 2011 we were phoned by Mr and Mrs. P Simon who, having bought a garden apartment in Llanfairpwllgwyngyll in June 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Llanfairpwllgwyngyll with an extended lease were valued about £255,000. The average ground rent payable was £50 billed monthly. The lease end date was in 2096. Taking into account 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Dr F Rose acquired a ground floor apartment in Llanfairpwllgwyngyll in October 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Llanfairpwllgwyngyll with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease expiry date was on 5 October 2076. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including fees.