It’s an underpublicised certainty that a Llanidloes residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Llanidloes 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 eighty years - otherwise a higher amount will be due. Most leasehold owners in Llanidloes will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Llanidloes with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Llanidloes can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring 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 studio flat in Llanidloes being sold with a lease of fraction over 72 years unexpired. John informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Mr and Mrs. K Williams bought a first floor apartment in Llanidloes in January 2010. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Llanidloes with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 5 June 2093. Given that there were 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Summer we were e-mailed by Mr and Mrs. G Reed , who purchased a basement apartment in Llanidloes in July 2003. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Identical flats in Llanidloes with a long lease were worth £213,600. The average amount of ground rent was £60 collected annually. The lease concluded on 10 March 2082. Having 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.