Llanharan leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be payable. Flat owners in Llanharan will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Llanharan with over one hundred years unexpired on the lease are often 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 buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Llanharan,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanharan valuers.
Evan was the the leasehold proprietor of a conversion apartment in Llanharan on the market with a lease of a few days over sixty years left. Evan informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Ms R Leroy completed a garden apartment in Llanharan in April 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Llanharan with an extended lease were valued around £235,200. The average amount of ground rent was £45 invoiced annually. The lease end date was in 2092. Considering the 66 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Mr and Mrs. H Garcia bought a studio flat in Llanharan in September 2003. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Llanharan with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 invoiced annually. The lease ended in 2103. Taking into account 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.