Unfortunately that a Llanrwst residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Llanrwst property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most flat owners in Llanrwst will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Llanrwst leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the landlord of her one bedroom apartment in Llanrwst, Imogen started the lease extension process as the 80 year deadline was rapidly nearing. The legal work was finalised in July 2014. The freeholder’s charges were negotiated to below six hundred pounds.
Last Spring we were called by Dr Elijah Michel , who was assigned a lease of a ground floor apartment in Llanrwst in June 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Llanrwst with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2086. Considering the 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
In 2009 we were called by Mr and Mrs. U Lambert who, having completed a basement flat in Llanrwst in February 2001. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable premises in Llanrwst with an extended lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease ended on 24 November 2097. Taking into account 71 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.