Llanrumney leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Llanrumney tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llanrumney you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Llanrumney leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Llanrumney 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 conveyancing solicitor we work with provide it.
Muhammad was the the leasehold proprietor of a studio flat in Llanrumney on the market with a lease of fraction over 72 years remaining. Muhammad informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. A Pérez was assigned a lease of a recently refurbished flat in Llanrumney in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Llanrumney with a long lease were worth £280,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish on 14 November 2096. Taking into account 70 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Last Winter we were called by Mr and Mrs. P Baker , who was assigned a lease of a ground floor flat in Llanrumney in October 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Llanrumney with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 collected per annum. The lease ended on 18 February 2085. Given that there were 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.