Llanrwst leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Llanrwst will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide 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 want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian owned a 2 bedroom apartment in Llanrwst on the market with a lease of a few days over 59 years unexpired. Sebastian on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were phoned by Mr U Laurent who, having was assigned a lease of a garden apartment in Llanrwst in March 2008. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Llanrwst with a long lease were worth £265,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded on 1 July 2098. Having 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2010 we were e-mailed by Mr and Mrs. G Nelson who, having bought a ground floor apartment in Llanrwst in September 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Llanrwst with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2078. Considering the 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus expenses.