Llangefni residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Llangefni lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie owned a 2 bedroom flat in Llangefni being marketed with a lease of a few days over 59 years unexpired. Jamie informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. H Hall completed a first floor apartment in Llangefni in February 2000. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Identical properties in Llangefni with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed quarterly. The lease ran out in 2092. Taking into account 67 years unexpired we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus expenses.
Mr Y Roberts purchased a garden apartment in Llangefni in August 2011. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar properties in Llangefni with an extended lease were in the region of £206,200. The average amount of ground rent was £60 billed annually. The lease finished on 8 July 2081. Given that there were 56 years outstanding we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.