Llanmartin leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Llanmartin residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Llanmartin you would be well advised to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Llanmartin leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Llanmartin with in excess of one hundred years unexpired 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with handle Llanmartin lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following unsuccessful negotiations with the landlord of her ground floor apartment in Llanmartin, Kirsty initiated the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in March 2009. The freeholder’s costs were negotiated to a tad over 450 GBP.
Mr and Mrs. E Clarke bought a basement flat in Llanmartin in September 2001. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparative residencies in Llanmartin with 100 year plus lease were valued about £206,200. The average ground rent payable was £55 billed every twelve months. The lease expired in 2081. Having 56 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
Last year we were contacted by Mr and Mrs. G Mercier , who owned a purpose-built apartment in Llanmartin in March 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar homes in Llanmartin with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease expiry date was in 2101. Considering the 76 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.