Llangefni leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Llangefni will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 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 ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Llangefni can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Llangefni lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Lucas, came very close to the eighty-year mark with the lease on his one bedroom apartment in Llangefni. In buying his property two decades ago, the unexpired term was of little significance. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. Lucas was able to extend his lease just under the wire last March. Lucas and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he had missed the deadline, the price would have escalated by at least £975.
Last Autumn we were called by Ms V Rivera , who took over the lease of a ground floor flat in Llangefni in October 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Llangefni with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 billed monthly. The lease concluded in 2099. Considering the 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last Summer we were contacted by Mr and Mrs. O Stewart , who moved into a one bedroom flat in Llangefni in February 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative homes in Llangefni with an extended lease were worth £243,000. The average ground rent payable was £65 invoiced monthly. The lease came to a finish in 2088. Having 63 years remaining we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.