Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Llanfechain. Clearly, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Llanfechain have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful attention before putting off your Llanfechain lease extension. Holding off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Llanfechain with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Llanfechain,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanfechain valuers.
In the wake of eight months of lengthy negotiations with the freeholder of her ground floor apartment in Llanfechain, Stephanie commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction completed in March 2005. The freeholder’s fees were restricted to less than five hundred GBP.
In 2011 we were approached by Mr Felix Carter who, having completed a one bedroom flat in Llanfechain in March 2000. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical premises in Llanfechain with 100 year plus lease were valued about £227,800. The average ground rent payable was £45 billed every twelve months. The lease expiry date was in 2090. Given that there were 65 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.
In 2013 we were phoned by Mr and Mrs. J Mason who, having owned a first floor apartment in Llanfechain in October 2007. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Llanfechain with a long lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease termination date was on 5 June 2100. Having 75 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.