Llanrhystud leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Llanrhystud tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Llanrhystud you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Llanrhystud,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanrhystud valuers.
Trailing lengthy negotiations with the freeholder of her studio flat in Llanrhystud, Emily initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was finalised in August 2010. The landlord’s fees were negotiated to slightly above four hundred pounds.
Mr and Mrs. B Cox acquired a one bedroom apartment in Llanrhystud in April 1995. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Llanrhystud with a long lease were in the region of £250,400. The average ground rent payable was £65 billed quarterly. The lease expired in 2090. Given that there were 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
Mrs U Sharif purchased a studio flat in Llanrhystud in November 2008. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable properties in Llanrhystud with 100 year plus lease were in the region of £184,000. The average ground rent payable was £55 billed per annum. The lease lapsed on 7 August 2079. Taking into account 53 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.