With a residential leasehold property in Llanrhystud, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Llanrhystud with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years remaining, under the current statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Llanrhystud with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with undertake Llanrhystud 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 conveyancer we work with provide it.
Two years ago Gabriel, came perilously near to the eighty-year threshold with the lease on his leasehold flat in Llanrhystud. In buying his property twenty years previously, the lease term was of minimal relevance. by good luck, he noticed he needed to take steps soon on a lease extension. Gabriel extended the lease at the eleventh hour last June. Gabriel and the landlord in the end settled on sum of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £975.
In 2010 we were contacted by Ms Imogen François who, having purchased a one bedroom flat in Llanrhystud in January 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative residencies in Llanrhystud with a long lease were in the region of £196,400. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 8 November 2079. Considering the 54 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £35,200 and £40,600 not including professional charges.
Ms D Rogers took over the lease of a first floor apartment in Llanrhystud in November 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Llanrhystud with a long lease were in the region of £295,000. The average ground rent payable was £45 invoiced quarterly. The lease finished on 14 March 2099. Considering the 74 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.