It’s a harsh certainty that a Llangammarch Wells residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Llangammarch Wells property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Llangammarch Wells will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you better control over the value of your Llangammarch Wells leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Following unsuccessful discussions with the landlord of her leasehold flat in Llangammarch Wells, Chloe commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension completed in January 2005. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. W González took over the lease of a one bedroom apartment in Llangammarch Wells in October 2002. The question was if we could approximate the price would be for a 90 year lease extension. Comparative properties in Llangammarch Wells with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease ended on 23 July 2085. Having 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of costs.
In 2013 we were phoned by Dr P Mitchell who, having owned a purpose-built apartment in Llangammarch Wells in June 2008. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable residencies in Llangammarch Wells with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease termination date was on 6 April 2096. Taking into account 71 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.