Llanishen residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Llanishen with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Llanishen leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jack, came perilously near to the eighty-year mark with the lease on his ground floor flat in Llanishen. Having purchased his flat twenty years ago, the lease term was of minimal relevance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Jack arranged for a lease extension at the eleventh hour last June. Jack and the freeholder in the end settled on an amount of £6,000 . If he not met the deadline, the sum would have increased by a minimum £1,025.
In 2013 we were e-mailed by Ms P López who, having took over the lease of a one bedroom apartment in Llanishen in September 2004. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable residencies in Llanishen with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected annually. The lease expired on 16 August 2088. Considering the 63 years remaining we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including fees.
Dr D Williams owned a garden flat in Llanishen in January 2012. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Similar flats in Llanishen with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 12 March 2099. Given that there were 74 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.