There is no doubt about it a leasehold property in Llanidloes is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Llanidloes will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Llanidloes with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society |
Lease extensions in Llanidloes can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Llanidloes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a 2 bedroom flat in Llanidloes on the market with a lease of a few days over sixty years unexpired. John informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. W Miller purchased a one bedroom flat in Llanidloes in September 1997. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable flats in Llanidloes with a long lease were valued about £223,400. The average amount of ground rent was £60 collected annually. The lease concluded on 27 March 2085. Taking into account 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.
Last January we were e-mailed by Dr Stephanie André , who owned a one bedroom flat in Llanidloes in February 2007. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Llanidloes with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish on 12 January 2105. Taking into account 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.