When it comes to residential leasehold premises in Llantwit Fardre, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Leasehold owners in Llantwit Fardre with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When the lease term has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises 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 value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Evan owned a 2 bedroom apartment in Llantwit Fardre being marketed with a lease of a little over fifty eight years left. Evan informally spoke with his landlord being a well known Manchester-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 to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Evan to exercise his statutory right. Evan obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
In 2012 we were called by Mr H Bell who, having purchased a ground floor flat in Llantwit Fardre in July 2000. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Llantwit Fardre with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced monthly. The lease termination date was on 28 September 2090. Given that there were 64 years outstanding we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of legals.
In 2012 we were approached by Dr Hunter Moore who, having acquired a garden apartment in Llantwit Fardre in April 2000. The question was if we could estimate the price could be to extend the lease by an additional years. Comparable properties in Llantwit Fardre with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2101. Considering the 75 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.