The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Llantarnam may extend the lease for an additional ninety years in accordance with statute. Do think carefully before delaying your Llantarnam lease extension. Postponing that expense today simply increases the amount you will eventually have to pay to extend the lease.
Leasehold properties in Llantarnam with over one hundred years outstanding 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 situations there is often little to be gained by purchasing the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancers that we work with procure Llantarnam 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 lawyer we work with provide it.
Last Summer Nathaniel, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Llantarnam. Having bought his property two decades ago, the lease term was of no importance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Nathaniel arranged for a lease extension at the eleventh hour last April. Nathaniel and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slipped lower than eighty years, the figure would have escalated by a minimum £975.
Mrs Jordan Collins moved into a basement flat in Llantarnam in June 2009. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Llantarnam with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2084. Considering the 59 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.
Last month we were approach by Mr and Mrs. C Simon , who completed a one bedroom apartment in Llantarnam in May 1995. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Llantarnam with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2104. Given that there were 79 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.