The nearer a residential lease in Llanfyllin gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Llanfyllin will qualify for this right; however a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
The conveyancers that we work with handle Llanfyllin lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her leasehold apartment in Llanfyllin, Kate started the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction was finalised in June 2009. The landlord’s charges were kept to an absolute minimum.
Last Winter we were called by Dr R Green , who moved into a first floor flat in Llanfyllin in May 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Llanfyllin with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease terminated on 10 November 2091. Having 66 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Spring we were called by Ms D Williams , who acquired a recently refurbished apartment in Llanfyllin in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Llanfyllin with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease end date was on 25 February 2102. Taking into account 77 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.