Llanrwst leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Llanrwst enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Llanrwst you must see if your lease has between seventy and 90 years left. There are compelling reasons why a Llanrwst flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Llanrwst 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 lawyer we work with provide it.
Off the back of lengthy negotiations with the landlord of her first floor flat in Llanrwst, Amelia initiated the lease extension process as the eighty year deadline was rapidly nearing. The lease extension completed in May 2014. The freeholder’s costs were restricted to about 500 pounds.
Mr and Mrs. T Bennett was assigned a lease of a basement flat in Llanrwst in January 2011. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar residencies in Llanrwst with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded in 2094. Given that there were 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mr O Johnson bought a purpose-built flat in Llanrwst in April 2000. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Llanrwst with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 invoiced per annum. The lease expired in 2105. Having 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.