The re-sale value of a leasehold property in Llanwrda is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year threshold. Statute enables Llanwrda qualifying lessees to an additional term of 90 years in addition to the existing term, at a notional rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Llanwrda with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llanwrda can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 a wealth of experience 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.
Jayden was the the leasehold proprietor of a studio flat in Llanwrda on the market with a lease of just over 59 years remaining. Jayden informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Mr and Mrs. I Vincent , who owned a purpose-built flat in Llanwrda in January 2002. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar homes in Llanwrda with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished in 2092. Having 66 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Ms Isabella Williams bought a studio flat in Llanwrda in March 2010. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Llanwrda with 100 year plus lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease expired in 2103. Considering the 77 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.