Llanwrda leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Llanwrda will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Llanwrda with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Llanwrda 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 lawyer we work with provide it.
Last October Jonathan, came seriously near to the eighty-year threshold with the lease on his one bedroom flat in Llanwrda. Having purchased his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Jonathan extended the lease just ahead of time in July. Jonathan and the landlord who owned the flat above eventually settled on a premium of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,125.
In 2014 we were called by Dr Henry Adams who, having bought a first floor flat in Llanwrda in November 2002. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Llanwrda with a long lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease expired in 2081. Having 56 years unexpired we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including expenses.
In 2010 we were called by Dr Holly Harris who, having owned a studio apartment in Llanwrda in July 2007. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable properties in Llanwrda with 100 year plus lease were valued around £237,600. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed on 18 October 2092. Considering the 67 years remaining we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.