For anyone whose Llanmartin property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Llanmartin leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her leasehold flat in Llanmartin, Poppy commenced the lease extension process as the eighty year deadline was swiftly coming. The lease extension was concluded in April 2007. The landlord’s costs were kept to an absolute minimum.
In 2012 we were approached by Mr and Mrs. V Evans who, having moved into a purpose-built apartment in Llanmartin in March 2008. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar residencies in Llanmartin with a long lease were valued around £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed in 2084. Given that there were 58 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
In 2009 we were contacted by Ms Shannon Gómez who, having owned a garden flat in Llanmartin in October 2001. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Identical flats in Llanmartin with a long lease were valued around £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease expiry date was on 19 April 2104. Given that there were 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.