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 becomes more expensive. It is the case that most Llanfechain tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Llanfechain you really ought to see if your lease has between seventy and ninety years remaining. There are good reasons why a Llanfechain flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Llanfechain with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 procuring Llanfechain lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel was the the leasehold owner of a 2 bedroom flat in Llanfechain on the market with a lease of fraction over 61 years left. Samuel informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms G Collins bought a basement flat in Llanfechain in October 2011. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical residencies in Llanfechain with an extended lease were valued about £260,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 16 September 2097. Having 71 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Last Summer we were approach by Mrs Chelsea Richardson , who owned a basement flat in Llanfechain in September 2011. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical premises in Llanfechain with an extended lease were worth £254,200. The average amount of ground rent was £60 collected annually. The lease elapsed on 26 August 2077. Taking into account 51 years outstanding we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including fees.