Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Llanfyllin. Inevitably, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Llanfyllin have the legal entitlement to extend the lease for a further 90 years in accordance with statute. You should give careful consideration before delaying your Llanfyllin lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Felix was the the leasehold owner of a studio flat in Llanfyllin on the market with a lease of a little over fifty eight years outstanding. Felix informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last June we were e-mailed by Ms O Phillips , who owned a studio apartment in Llanfyllin in October 1999. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Llanfyllin with a long lease were worth £265,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish on 13 August 2099. Having 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Christmas we were contacted by Mr and Mrs. E Stewart , who owned a newly refurbished apartment in Llanfyllin in November 2003. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable properties in Llanfyllin with a long lease were worth £264,000. The average ground rent payable was £60 billed every twelve months. The lease came to a finish on 16 November 2079. Considering the 53 years outstanding we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.