Unfortunately that a Llanfyrnach residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Llanfyrnach property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Llanfyrnach will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a property with more than 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 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | 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 conveyancing solicitors that we work with undertake Llanfyrnach 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.
Last year Rory, came precariously close to the eighty-year mark with the lease on his basement apartment in Llanfyrnach. Having bought his home 18 years previously, the unexpired term was of minimal bearing. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Rory was able to extend his lease just under the wire last March. Rory and the landlord subsequently settled on sum of £6,000 . If he failed to meet the deadline, the figure would have become more costly by at least £1,125.
Last Spring we were e-mailed by Mr and Mrs. A Martin , who purchased a one bedroom apartment in Llanfyrnach in February 1997. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable premises in Llanfyrnach with an extended lease were valued about £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease expiry date was on 16 September 2099. Considering the 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were approach by Mr Jude Smith , who was assigned a lease of a one bedroom apartment in Llanfyrnach in May 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Llanfyrnach with 100 year plus lease were valued around £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease came to a finish in 2079. Having 54 years remaining we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.