When it comes to long leasehold premises in Llangollen, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about 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 greater notably once there are less than eighty years left. Anyone in Llangollen with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Engaging our service will provide you increased control over the value of your Llangollen leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her basement flat in Llangollen, Amber commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction completed in November 2011. The landlord’s fees were negotiated to approximately six hundred pounds.
Mr and Mrs. P Michel completed a studio flat in Llangollen in September 2008. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative flats in Llangollen with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 8 August 2075. Taking into account 50 years remaining we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.
In 2012 we were e-mailed by Mr and Mrs. B Nguyen who, having acquired a newly refurbished apartment in Llangollen in August 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Llangollen with a long lease were valued around £203,200. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2086. Taking into account 61 years remaining we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.