The market value of a leasehold property in Llantwit Fardre depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Llantwit Fardre qualifying lessees to an additional term of ninety years over and above the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Llantwit Fardre with in excess of one hundred years remaining on the lease are often 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 reversionary interest unless savings on ground rent and service 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Llantwit Fardre,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 in-depth market knowledge and the close ties they enjoy with Llantwit Fardre valuers.
Nathan owned a studio apartment in Llantwit Fardre being marketed with a lease of just over fifty eight years outstanding. Nathan on an informal basis approached 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 grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were approached by Mr and Mrs. M Bennett who, having was assigned a lease of a ground floor apartment in Llantwit Fardre in July 2007. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar properties in Llantwit Fardre with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed annually. The lease expired in 2081. Given that there were 56 years remaining we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including expenses.
Last month we were e-mailed by Dr N Clark , who purchased a recently refurbished flat in Llantwit Fardre in March 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Llantwit Fardre with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2092. Taking into account 67 years unexpired we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus legals.