Llangefni leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Llangefni tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Llangefni you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Llangefni with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you enhanced control over the value of your Llangefni leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a conversion apartment in Llangefni being marketed with a lease of fraction over sixty years left. Reuben on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were approach by Mr G Khan , who bought a purpose-built apartment in Llangefni in March 2009. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative homes in Llangefni with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish on 17 May 2080. Considering the 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including costs.
In 2012 we were called by Dr Ryan Peterson who, having took over the lease of a recently refurbished apartment in Llangefni in October 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Llangefni with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended in 2100. Considering the 75 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.