It’s an underpublicised truth that a Llanmartin residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Llanmartin property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Llanmartin will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Llanmartin with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Llanmartin leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Nathan, started to get near to the 80-year threshold with the lease on his leasehold apartment in Llanmartin. In buying his flat twenty years previously, the lease term was of minimal significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Nathan was able to extend his lease at the eleventh hour last August. Nathan and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had dropped lower than eighty years, the sum would have become more costly by a minimum £900.
In 2012 we were called by Dr Maisie Carter who, having bought a studio flat in Llanmartin in August 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Llanmartin with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed in 2096. Taking into account 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Last Autumn we were approach by Mr and Mrs. G Martin , who owned a basement flat in Llanmartin in September 1999. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable flats in Llanmartin with an extended lease were worth £223,400. The average ground rent payable was £60 collected quarterly. The lease elapsed in 2085. Taking into account 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus fees.