The nearer a domestic lease in Llanrumney gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Llanrumney will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Llanrumney with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle 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.
Austin owned a high value apartment in Llanrumney being marketed with a lease of a few days over sixty years unexpired. Austin on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Mr and Mrs. N Sánchez completed a purpose-built apartment in Llanrumney in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Llanrumney with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease end date was on 6 October 2100. Given that there were 75 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
In 2010 we were e-mailed by Mr and Mrs. B Davis who, having took over the lease of a studio flat in Llanrumney in October 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Llanrumney with 100 year plus lease were worth £250,400. The average ground rent payable was £65 billed yearly. The lease ended in 2089. Taking into account 64 years outstanding we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus legals.