It’s an underpublicised certainty that a Llanharan residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Llanharan property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Llanharan will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Llanharan,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanharan valuers.
In the wake of 9 months of unsuccessful discussions with the freeholder of her basement apartment in Llanharan, Bethan started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work completed in October 2012. The freeholder’s costs were restricted to slightly above 650 GBP.
Mrs B Watson bought a studio apartment in Llanharan in July 2002. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Similar premises in Llanharan with an extended lease were valued about £245,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2094. Given that there were 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2011 we were called by Mr G Bertrand who, having moved into a purpose-built flat in Llanharan in October 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Llanharan with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2105. Taking into account 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.