There is no doubt about it a leasehold property in Llanfairpwllgwyngyll is a wasting asset as a result of the shortening lease. Where the lease has, more than 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Llanfairpwllgwyngyll will qualify for this right; that being said a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Llanfairpwllgwyngyll with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Llanfairpwllgwyngyll,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanfairpwllgwyngyll valuers.
Leo owned a conversion apartment in Llanfairpwllgwyngyll being marketed with a lease of a few days over 72 years outstanding. Leo on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. B López who, having took over the lease of a garden apartment in Llanfairpwllgwyngyll in November 1997. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparable flats in Llanfairpwllgwyngyll with 100 year plus lease were valued about £256,600. The mid-range ground rent payable was £60 billed yearly. The lease expired in 2077. Considering the 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of legals.
Dr Paige Wood owned a basement flat in Llanfairpwllgwyngyll in May 2011. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Llanfairpwllgwyngyll with a long lease were worth £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 11 March 2088. Given that there were 63 years left we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of expenses.