Unfortunately that a Llansamlet 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 early years due to the reduction being disguised by increases in the Llansamlet property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Llansamlet will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Llansamlet with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Yorkshire 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. |
Lease extensions in Llansamlet can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Llansamlet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur owned a 2 bedroom apartment in Llansamlet on the market with a lease of a few days over fifty eight years unexpired. Arthur informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2010 we were contacted by Mr Archie Lee who, having moved into a garden flat in Llansamlet in February 1995. The question was if we could estimate the price would be to extend the lease by an additional years. Comparable premises in Llansamlet with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced yearly. The lease ended on 19 July 2102. Taking into account 77 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
In 2009 we were approached by Ms Poppy Reed who, having owned a basement apartment in Llansamlet in July 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Llansamlet with an extended lease were valued about £260,200. The mid-range amount of ground rent was £65 collected monthly. The lease termination date was in 2091. Given that there were 66 years left we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of legals.