Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Llantarnam. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Llantarnam have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful deliberation before delaying your Llantarnam lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 Llantarnam can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 Llantarnam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan was the the leasehold proprietor of a high value flat in Llantarnam on the market with a lease of a few days over 61 years left. Jonathan informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Mrs Harriet Turner bought a ground floor apartment in Llantarnam in May 2000. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative premises in Llantarnam with a long lease were valued about £191,400. The average ground rent payable was £55 invoiced yearly. The lease ran out in 2079. Considering the 54 years outstanding we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. L Rivera who, having was assigned a lease of a basement flat in Llantarnam in February 2001. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical flats in Llantarnam with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease concluded on 12 March 2099. Taking into account 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.