The market value of Llanwrda leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than eighty years
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with handle 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 Summer Riley, came critically close to the eighty-year mark with the lease on his purpose- built flat in Llanwrda. In buying his flat 18 years previously, the lease term was of no significance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Riley was able to extend his lease at the eleventh hour in May. Riley and the freeholder via the management company subsequently agreed on a premium of £6,000 . If the lease had slipped lower than 80 years, the figure would have escalated by a minimum £1,075.
Last Summer we were called by Mrs Grace Morel , who moved into a ground floor apartment in Llanwrda in July 2005. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar premises in Llanwrda with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2093. Taking into account 67 years outstanding we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.
In 2014 we were e-mailed by Ms D Girard who, having took over the lease of a ground floor apartment in Llanwrda in May 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Identical premises in Llanwrda with an extended lease were worth £280,000. The average ground rent payable was £55 collected quarterly. The lease expiry date was on 12 November 2104. Taking into account 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.