On the balance of probabilities where you own a flat in Llanfyllin you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanfyllin can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Llanfyllin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Harvey, started to get near to the 80-year mark with the lease on his basement flat in Llanfyllin. Having purchased his home two decades ago, the lease term was of no bearing. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Harvey was able to extend his lease at the eleventh hour last April. Harvey and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had fallen below 80 years, the amount would have become more costly by a minimum £1,100.
In 2010 we were phoned by Mr and Mrs. T Moreau who, having was assigned a lease of a studio flat in Llanfyllin in October 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable homes in Llanfyllin with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed annually. The lease lapsed in 2084. Considering the 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.
Dr J Jones took over the lease of a recently refurbished flat in Llanfyllin in November 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Llanfyllin with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease end date was on 19 March 2095. Taking into account 70 years unexpired we calculated the premium to the landlord for the lease extension to be within £10,500 and £12,000 not including professional charges.