The nearer a domestic lease in Llansamlet nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Llansamlet will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Llansamlet with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with handle Llansamlet 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 conveyancer we work with provide it.
In the wake of 6 months of lengthy discussions with the landlord of her studio flat in Llansamlet, Chantelle started the lease extension process as the 80 year deadline was rapidly advancing. The lease extension completed in November 2012. The landlord’s fees were restricted to under 450 GBP.
In 2012 we were contacted by Mr A Kelly who, having acquired a newly refurbished apartment in Llansamlet in January 2005. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Llansamlet with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 invoiced annually. The lease concluded in 2099. Given that there were 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Last month we were phoned by Dr D Smith , who moved into a ground floor flat in Llansamlet in April 1997. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Identical homes in Llansamlet with a long lease were worth £243,000. The average amount of ground rent was £65 invoiced yearly. The lease finished in 2088. Given that there were 63 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.