With a residential leasehold premises in Llanrumney, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Llanrumney with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 Llanrumney,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanrumney valuers.
Half a year ago Dylan, started to get near to the eighty-year mark with the lease on his ground floor flat in Llanrumney. Having bought his home twenty years previously, the length of the lease was of no concern. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Dylan arranged for a lease extension at the eleventh hour in March. Dylan and the landlord in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,075.
In 2012 we were phoned by Mr and Mrs. O Allen who, having owned a one bedroom flat in Llanrumney in August 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Llanrumney with 100 year plus lease were worth £184,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out on 3 September 2079. Taking into account 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Dr J Martin completed a first floor apartment in Llanrumney in October 2009. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Llanrumney with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 collected monthly. The lease terminated in 2099. Having 73 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.