When it comes to domestic leasehold property in Llansamlet, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in Llansamlet with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Llansamlet 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Llansamlet,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llansamlet valuers.
George owned a studio apartment in Llansamlet being marketed with a lease of a few days over 61 years unexpired. George informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were George to invoke his statutory right. George procured expert advice and secured an acceptable resolution informally and readily saleable.
Dr C Bailey completed a garden apartment in Llansamlet in September 2004. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Llansamlet with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 billed monthly. The lease ran out on 8 November 2105. Taking into account 79 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Last month we were approach by Mr and Mrs. V Martínez , who purchased a purpose-built apartment in Llansamlet in November 2008. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical premises in Llansamlet with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2094. Having 68 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.