Llanfyllin leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Llanfyllin residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Llanfyllin you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Llanfyllin flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Llanfyllin with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Llanfyllin can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Llanfyllin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a 2 bedroom apartment in Llanfyllin on the market with a lease of a few days over sixty years unexpired. Lucas on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Spring we were e-mailed by Ms O Williams , who purchased a recently refurbished apartment in Llanfyllin in July 1995. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable properties in Llanfyllin with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 20 September 2080. Having 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.
Last Christmas we were approach by Dr H González , who purchased a ground floor apartment in Llanfyllin in September 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Llanfyllin with a long lease were worth £227,800. The mid-range amount of ground rent was £45 billed annually. The lease ran out on 13 March 2091. Given that there were 65 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.