Llanishen leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Llanishen enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Llanishen you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Llanishen with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Llanishen leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Henry, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Llanishen. Having bought his property two decades ago, the length of the lease was of minimal concern. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Henry was able to extend his lease just under the wire in August. Henry and the freeholder in the end settled on an amount of £6,000 . If the lease had dipped lower than eighty years, the sum would have increased by a minimum £850.
Mr and Mrs. P Watson purchased a one bedroom flat in Llanishen in April 2006. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Llanishen with a long lease were worth £186,000. The mid-range ground rent payable was £65 billed yearly. The lease expiry date was in 2084. Considering the 58 years remaining we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of fees.
Last Spring we were contacted by Ms Niamh Ramírez , who took over the lease of a garden flat in Llanishen in March 2000. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable premises in Llanishen with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out on 16 April 2095. Taking into account 69 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.