Llantwit Major residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Llantwit Major with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Llantwit Major 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.
In the wake of 6 months of protracted discussions with the landlord of her basement apartment in Llantwit Major, Megan commenced the lease extension process as the 80 year mark was rapidly coming. The legal work was concluded in September 2011. The landlord’s fees were negotiated to about 650 GBP.
Last Christmas we were approach by Mr and Mrs. B Walker , who acquired a ground floor apartment in Llantwit Major in May 2000. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar homes in Llantwit Major with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished in 2099. Considering the 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Christmas we were e-mailed by Ms Daisy Bailey , who acquired a one bedroom apartment in Llantwit Major in October 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Llantwit Major with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 collected monthly. The lease ended on 18 October 2079. Taking into account 53 years left we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.