On the balance of probabilities if you own a flat in Llanidloes you actually own a long leasehold interest over your property
Leasehold residencies in Llanidloes with more than 100 years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Llanidloes leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her leasehold apartment in Llanidloes, Paige initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work completed in August 2011. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were approach by Dr Luca Lewis , who took over the lease of a purpose-built flat in Llanidloes in March 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Llanidloes with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 billed per annum. The lease elapsed on 9 September 2104. Given that there were 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £7,600 and £8,800 plus costs.
In 2013 we were contacted by Mr Lewis Sánchez who, having completed a first floor flat in Llanidloes in September 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Llanidloes with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out in 2093. Considering the 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.