Unfortunately that a Llantwit Fardre residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Llantwit Fardre property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Llantwit Fardre will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Llantwit Fardre with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Llantwit Fardre 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.
After protracted negotiations with the freeholder of her purpose-built flat in Llantwit Fardre, Madeleine commenced the lease extension process as the eighty year threshold was fast coming. The lease extension completed in May 2014. The landlord’s costs were kept to an absolute minimum.
Last month we were contacted by Dr D Allen , who acquired a ground floor flat in Llantwit Fardre in November 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Llantwit Fardre with a long lease were worth £249,200. The average amount of ground rent was £60 collected every twelve months. The lease terminated in 2077. Having 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £42,800 and £49,400 not including fees.
Mrs Freya Turner moved into a ground floor apartment in Llantwit Fardre in October 2010. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Identical flats in Llantwit Fardre with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease ended on 3 May 2087. Considering the 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of fees.