Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Llanrwst. Clearly, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Llanrwst have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Llanrwst lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Llanrwst,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 experience and the close ties they enjoy with Llanrwst valuers.
Leo was the the leasehold owner of a 2 bedroom apartment in Llanrwst being sold with a lease of fraction over 72 years remaining. Leo on an informal basis approached his freeholder being a well known local-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 on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2014 we were approached by Mr Isaac James who, having owned a one bedroom flat in Llanrwst in July 2009. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical residencies in Llanrwst with a long lease were worth £191,000. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 18 May 2083. Given that there were 58 years remaining we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including costs.
Mr Arthur Díaz completed a one bedroom apartment in Llanrwst in November 2008. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparative residencies in Llanrwst with a long lease were valued about £250,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded in 2094. Having 69 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.