Llanfechain leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Llanfechain tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Llanfechain you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Llanfechain with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Lease extensions in Llanfechain can be a difficult process. We recommend you obtain guidance 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 in-depth market knowledge dealing with Llanfechain lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a studio flat in Llanfechain being marketed with a lease of just over sixty years outstanding. Nathaniel on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2014 we were contacted by Ms Isabelle Stewart who, having was assigned a lease of a purpose-built apartment in Llanfechain in September 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Llanfechain with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected annually. The lease ran out in 2080. Taking into account 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus costs.
Ms Stephanie Rivera owned a one bedroom apartment in Llanfechain in October 2001. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Llanfechain with a long lease were in the region of £232,800. The mid-range ground rent payable was £45 collected quarterly. The lease ran out in 2091. Given that there were 65 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.