When it comes to long leasehold premises in Llanwrda, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Anyone in Llanwrda with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has under eighty years remaining, under the relevant legislation the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Llanwrda with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Llanwrda leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Teddy, started to get near to the 80-year mark with the lease on his ground floor apartment in Llanwrda. Having purchased his property two decades ago, the unexpired term was of little relevance. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Teddy was able to extend his lease at the eleventh hour in April. Teddy and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he not met the deadline, the sum would have increased by a minimum £850.
Ms Alisha Rodríguez took over the lease of a recently refurbished flat in Llanwrda in March 1995. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Llanwrda with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease concluded in 2100. Considering the 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last June we were phoned by Ms I Gray , who acquired a basement apartment in Llanwrda in June 2009. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar properties in Llanwrda with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated on 1 September 2080. Taking into account 55 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.