Llanfairpwllgwyngyll residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Llanfairpwllgwyngyll with more than one hundred years outstanding 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 upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Llanfairpwllgwyngyll lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of protracted negotiations with the landlord of her purpose-built apartment in Llanfairpwllgwyngyll, Madeleine commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work completed in January 2007. The landlord’s charges were kept to an absolute minimum.
In 2010 we were contacted by Dr Y Gunderson who, having was assigned a lease of a garden flat in Llanfairpwllgwyngyll in February 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Llanfairpwllgwyngyll with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2104. Given that there were 78 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last Autumn we were called by Mrs Ellie Ward , who purchased a garden apartment in Llanfairpwllgwyngyll in May 1999. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar premises in Llanfairpwllgwyngyll with an extended lease were worth £186,000. The average ground rent payable was £65 collected yearly. The lease terminated in 2084. Considering the 58 years remaining we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.