Llangollen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Llangollen tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llangollen you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Llangollen leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Retaining our service will provide you enhanced control over the value of your Llangollen leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel was the the leasehold owner of a 2 bedroom flat in Llangollen being marketed with a lease of fraction over 59 years remaining. Daniel informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert advice and secured satisfactory resolution informally and sell the flat.
Mr and Mrs. T Murphy purchased a one bedroom apartment in Llangollen in April 2000. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparable residencies in Llangollen with an extended lease were worth £235,200. The mid-range ground rent payable was £45 billed monthly. The lease elapsed in 2091. Taking into account 66 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
In 2014 we were approached by Mr G Martínez who, having completed a purpose-built apartment in Llangollen in January 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable residencies in Llangollen with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease ran out in 2102. Having 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.