Llanfairpwllgwyngyll leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Llanfairpwllgwyngyll tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llanfairpwllgwyngyll you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Llanfairpwllgwyngyll leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Llanfairpwllgwyngyll with more than 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanfairpwllgwyngyll can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge 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.
Theo owned a high value apartment in Llanfairpwllgwyngyll on the market with a lease of a little over 61 years left. Theo informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and secured an acceptable deal informally and sell the property.
Mr Dylan Allen acquired a one bedroom apartment in Llanfairpwllgwyngyll in January 1997. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar flats in Llanfairpwllgwyngyll with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 2 October 2089. Having 64 years unexpired we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 plus costs.
In 2010 we were approached by Dr Max Taylor who, having took over the lease of a garden flat in Llanfairpwllgwyngyll in March 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Llanfairpwllgwyngyll with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 collected per annum. The lease terminated on 16 April 2100. Taking into account 75 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.