There is no doubt about it a leasehold property in Llansamlet is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Llansamlet will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Llansamlet with over 100 years left on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and estate charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
The lawyers that we work with procure 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.
Jayden was the the leasehold proprietor of a studio apartment in Llansamlet being marketed with a lease of fraction over fifty eight years remaining. Jayden on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were contacted by Mrs D Bailey who, having took over the lease of a first floor apartment in Llansamlet in March 2003. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Llansamlet with a long lease were worth £257,800. The average amount of ground rent was £65 collected per annum. The lease lapsed on 6 November 2091. Taking into account 65 years left we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.
Ms D Adams purchased a basement flat in Llansamlet in June 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative properties in Llansamlet with an extended lease were valued about £191,400. The average amount of ground rent was £55 invoiced per annum. The lease ended on 6 October 2080. Given that there were 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus expenses.