The market value of a leasehold property in Llangefni is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the 80 year threshold. Leasehold Reform legislation entitles Llangefni qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Llangefni with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Llangefni,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llangefni valuers.
Evan was the the leasehold proprietor of a studio apartment in Llangefni on the market with a lease of a little over 61 years unexpired. Evan on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were contacted by Dr Stephanie Scott who, having took over the lease of a first floor apartment in Llangefni in October 2002. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative flats in Llangefni with a long lease were in the region of £290,000. The average ground rent payable was £45 billed annually. The lease elapsed in 2098. Given that there were 72 years remaining we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.
Ms Isabelle King acquired a garden apartment in Llangefni in February 2005. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Llangefni with a long lease were worth £233,200. The average amount of ground rent was £60 billed yearly. The lease expired in 2087. Having 61 years unexpired we estimated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including expenses.