Llanon leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Llanon will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Llanon leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Edward, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Llanon. Having purchased his property two decades ago, the lease term was of little significance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Edward arranged for a lease extension at the eleventh hour last September. Edward and the freeholder ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,025.
Last Spring we were e-mailed by Dr Lewis Torres , who took over the lease of a ground floor flat in Llanon in October 2012. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical properties in Llanon with an extended lease were valued around £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2106. Having 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
In 2012 we were approached by Ms Alice Petit who, having completed a one bedroom flat in Llanon in April 1998. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable homes in Llanon with a long lease were worth £200,800. The average ground rent payable was £65 collected per annum. The lease terminated on 27 January 2086. Taking into account 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including fees.