The re-sale value of a leasehold property in Llanishen is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be finalised well before the eighty year cut off point. Leasehold Reform legislation enables Llanishen qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Llanishen with more than one hundred years left 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanishen can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 in-depth market knowledge procuring Llanishen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Teddy, came precariously close to the eighty-year threshold with the lease on his purpose- built apartment in Llanishen. In buying his home twenty years ago, the lease term was of no bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Teddy extended the lease at the eleventh hour last August. Teddy and the freeholder subsequently agreed on the final figure of £5,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £950.
Mr and Mrs. H André owned a garden flat in Llanishen in March 2009. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar flats in Llanishen with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 collected yearly. The lease finished in 2103. Taking into account 77 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
In 2010 we were e-mailed by Mrs R Reed who, having acquired a recently refurbished apartment in Llanishen in September 2002. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar properties in Llanishen with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease expired on 23 June 2083. Taking into account 57 years remaining we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.