Llanfechain leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Llanfechain enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Llanfechain you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Llanfechain,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanfechain valuers.
Following unsuccessful correspondence with the landlord of her two bedroom flat in Llanfechain, Isabel initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work completed in November 2008. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Dr G Clarke who, having took over the lease of a garden flat in Llanfechain in November 2010. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical residencies in Llanfechain with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed monthly. The lease expired in 2092. Given that there were 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
In 2010 we were approached by Ms N González who, having purchased a newly refurbished flat in Llanfechain in January 1999. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Llanfechain with an extended lease were valued about £280,000. The average ground rent payable was £55 billed monthly. The lease expiry date was on 17 March 2103. Considering the 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.