Llantrisant leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Llantrisant tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Llantrisant you should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Llantrisant flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Llantrisant with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Llantrisant,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llantrisant valuers.
Cameron owned a 2 bedroom apartment in Llantrisant on the market with a lease of just over sixty years outstanding. Cameron on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2012 we were approached by Mr Jonathan Wilson who, having completed a one bedroom flat in Llantrisant in January 2012. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Llantrisant with an extended lease were valued about £166,800. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 10 May 2075. Given that there were 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including fees.
Dr K Díaz took over the lease of a first floor flat in Llantrisant in February 2012. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Llantrisant with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease ended in 2095. Having 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.