With a domestic leasehold premises in Llanfyrnach, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years remaining. Residents in Llanfyrnach with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years left, under the current Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Llanfyrnach with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Llanfyrnach can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Llanfyrnach lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley was the the leasehold proprietor of a 2 bedroom apartment in Llanfyrnach being sold with a lease of fraction over 59 years left. Riley on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert advice and secured satisfactory deal informally and readily saleable.
Last March we were approach by Mr Gabriel Khan , who took over the lease of a one bedroom flat in Llanfyrnach in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Llanfyrnach with 100 year plus lease were worth £173,800. The average ground rent payable was £60 invoiced monthly. The lease elapsed on 19 May 2080. Taking into account 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Last Christmas we were phoned by Mr and Mrs. T Moreau , who took over the lease of a first floor apartment in Llanfyrnach in February 2011. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical flats in Llanfyrnach with an extended lease were valued around £235,200. The average amount of ground rent was £45 collected yearly. The lease ended on 24 July 2091. Considering the 66 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.