It’s an underpublicised truth that a Llanharan residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Llanharan property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Llanharan will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Llanharan,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanharan valuers.
Harrison was the the leasehold owner of a studio flat in Llanharan on the market with a lease of a little over 59 years remaining. Harrison informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr D Wood moved into a basement apartment in Llanharan in August 2001. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Llanharan with an extended lease were valued about £285,000. The average ground rent payable was £55 invoiced per annum. The lease expiry date was on 7 February 2106. Taking into account 80 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Ms A Laurent took over the lease of a ground floor flat in Llanharan in August 2011. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable properties in Llanharan with 100 year plus lease were valued about £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease terminated in 2086. Taking into account 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.