With a domestic leasehold property in Llantrisant, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years remaining. Leasehold owners in Llantrisant with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has fewer than eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Llantrisant with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Coventry Building Society | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Llantrisant can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Llantrisant lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie owned a studio apartment in Llantrisant on the market with a lease of fraction over 59 years outstanding. Ollie informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were called by Ms E François who, having completed a garden apartment in Llantrisant in April 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar homes in Llantrisant with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2103. Given that there were 78 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
In 2013 we were called by Ms Kate Cook who, having was assigned a lease of a one bedroom flat in Llantrisant in August 1996. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Llantrisant with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced quarterly. The lease ran out on 15 June 2092. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of legals.