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 cost of a lease extension can escalate significantly once the unexpired lease term is less than 80 years
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Llanwrda can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Llanwrda lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Owen, started to get near to the eighty-year threshold with the lease on his first floor apartment in Llanwrda. In buying his flat 19 years previously, the unexpired term was of no interest. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Owen extended the lease just under the wire in June. Owen and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had gone to less than 80 years, the figure would have become more costly by at least £975.
Last August we were called by Mrs L Dupont , who purchased a one bedroom flat in Llanwrda in February 2006. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative flats in Llanwrda with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 collected annually. The lease finished in 2080. Considering the 54 years left we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.
In 2010 we were phoned by Mr Nathaniel Michel who, having moved into a newly refurbished apartment in Llanwrda in August 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Llanwrda with an extended lease were worth £227,800. The mid-range amount of ground rent was £45 collected per annum. The lease expiry date was in 2091. Having 65 years outstanding we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.