When it comes to residential leasehold property in Llanrhystud, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years remaining. Residents in Llanrhystud with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Llanrhystud,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanrhystud valuers.
In the wake of eight months of unsuccessful negotiations with the freeholder of her two bedroom apartment in Llanrhystud, Charlotte initiated the lease extension process just as the lease was coming close to the crucial 80-year mark. The legal work completed in January 2008. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mr U Rodríguez who, having owned a ground floor flat in Llanrhystud in October 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Llanrhystud with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed quarterly. The lease terminated on 9 February 2095. Considering the 69 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2012 we were called by Mrs E Murphy who, having was assigned a lease of a one bedroom flat in Llanrhystud in February 2002. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Llanrhystud with 100 year plus lease were valued around £216,000. The mid-range ground rent payable was £60 collected monthly. The lease ran out on 1 January 2084. Taking into account 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.