With a residential leasehold premises in Llangefni, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years remaining. Residents in Llangefni with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has under 80 years outstanding, under the current Act the landlord can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Llangefni with over one hundred years remaining on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llangefni can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Last October Tyler, came critically close to the eighty-year mark with the lease on his purpose- built flat in Llangefni. In buying his property 18 years previously, the lease term was of little interest. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Tyler arranged for a lease extension at the eleventh hour in May. Tyler and the landlord eventually agreed on an amount of £5,000 . If the lease had gone lower than 80 years, the sum would have gone up by at least £1,150.
Last Summer we were contacted by Mr G Bailey , who bought a garden apartment in Llangefni in November 1997. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Llangefni with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected annually. The lease ended in 2105. Having 79 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2011 we were phoned by Dr F Peterson who, having moved into a first floor apartment in Llangefni in January 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Llangefni with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected per annum. The lease concluded on 14 July 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.