When it comes to domestic leasehold property in Llanrwst, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Residents in Llanrwst with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has under 80 years left, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Llanrwst with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Llanrwst,the lease extension experts 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 Llanrwst valuers.
Following protracted negotiations with the landlord of her two bedroom flat in Llanrwst, Freya commenced the lease extension process as the 80 year threshold was swiftly coming. The legal work was finalised in July 2011. The landlord’s charges were restricted to approximately 600 GBP.
In 2013 we were phoned by Mr Ryan Kelly who, having purchased a ground floor flat in Llanrwst in July 1997. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable residencies in Llanrwst with an extended lease were valued about £270,000. The average amount of ground rent was £55 billed annually. The lease end date was in 2101. Given that there were 75 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mrs I Lee acquired a newly refurbished flat in Llanrwst in January 1997. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical flats in Llanrwst with an extended lease were in the region of £173,800. The average amount of ground rent was £60 collected yearly. The lease ended on 19 August 2081. Having 55 years as a residual term we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.