The market value of a leasehold property in Llangammarch Wells is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be concluded well before the eighty year threshold. Current legislation entitles Llangammarch Wells qualifying lessees to an additional term of ninety years on top of the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Llangammarch Wells with more than one hundred years remaining on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and service charges justify 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Llangammarch Wells,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llangammarch Wells valuers.
Archie was the the leasehold proprietor of a 2 bedroom apartment in Llangammarch Wells on the market with a lease of a little over fifty eight years left. Archie on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were e-mailed by Mr D Miller who, having purchased a newly refurbished flat in Llangammarch Wells in June 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Llangammarch Wells with a long lease were valued about £275,000. The average ground rent payable was £55 invoiced monthly. The lease finished in 2103. Given that there were 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
Last Christmas we were approach by Dr Oliver Anderson , who moved into a studio flat in Llangammarch Wells in January 1997. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Similar residencies in Llangammarch Wells with a long lease were valued about £183,600. The mid-range ground rent payable was £65 collected monthly. The lease concluded on 24 January 2083. Having 57 years outstanding we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.