Llangollen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly 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 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Llangollen you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Llangollen with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Llangollen can be a difficult process. We recommend you get 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 Llangollen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her basement flat in Llangollen, Rachel commenced the lease extension process as the 80 year threshold was swiftly coming. The lease extension completed in October 2005. The freeholder’s costs were kept to an absolute minimum.
Dr Hannah Ramírez owned a ground floor flat in Llangollen in October 2007. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar premises in Llangollen with a long lease were worth £270,000. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 23 April 2102. Considering the 76 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
Mr D Lefebvre owned a ground floor apartment in Llangollen in February 1997. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar premises in Llangollen with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2082. Given that there were 56 years remaining we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus costs.