The re-sale value of a leasehold property in Llangammarch Wells is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year mark. Statute enables Llangammarch Wells qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Retaining our service will provide you enhanced control over the value of your Llangammarch Wells leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a studio apartment in Llangammarch Wells on the market with a lease of a few days over 61 years unexpired. Max on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were approached by Dr Victoria Miller who, having acquired a basement flat in Llangammarch Wells in October 2010. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical residencies in Llangammarch Wells with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 12 September 2097. Considering the 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Mr and Mrs. M Watson acquired a ground floor flat in Llangammarch Wells in May 2006. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Llangammarch Wells with a long lease were in the region of £261,600. The average ground rent payable was £60 invoiced every twelve months. The lease terminated in 2077. Given that there were 52 years left we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus expenses.