Llanfechain leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Llanfechain residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Llanfechain you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Llanfechain flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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 procure guidance from a lawyer 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 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.
Elijah owned a 2 bedroom flat in Llanfechain on the market with a lease of just over fifty eight years outstanding. Elijah on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last month we were contacted by Dr F Hall , who took over the lease of a one bedroom apartment in Llanfechain in October 2009. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical homes in Llanfechain with an extended lease were in the region of £186,000. The mid-range amount of ground rent was £65 collected per annum. The lease ended on 6 September 2083. Taking into account 58 years outstanding we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus expenses.
In 2014 we were approached by Mrs Lily Adams who, having acquired a one bedroom flat in Llanfechain in April 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative properties in Llanfechain with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced monthly. The lease came to a finish on 27 July 2094. Having 69 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.