With a long leasehold premises in Llangefni, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Llangefni with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current Act the landlord can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Llangefni with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold 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. |
| 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; |
| 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. |
| 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 |
| 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. |
The conveyancers that we work with handle Llangefni lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Tommy owned a conversion apartment in Llangefni being sold with a lease of just over 61 years remaining. Tommy on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert advice and secured satisfactory resolution informally and sell the flat.
In 2009 we were phoned by Dr R Pérez who, having moved into a studio apartment in Llangefni in January 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in Llangefni with an extended lease were valued around £200,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2103. Considering the 77 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Dr E James purchased a basement apartment in Llangefni in August 1998. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar flats in Llangefni with an extended lease were valued around £265,200. The average amount of ground rent was £65 collected yearly. The lease came to a finish in 2092. Having 66 years unexpired we calculated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of legals.