It’s a harsh truth that a Llanwrtyd Wells residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Llanwrtyd Wells property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Llanwrtyd Wells will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Llanwrtyd Wells,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanwrtyd Wells valuers.
Following protracted negotiations with the freeholder of her purpose-built flat in Llanwrtyd Wells, Erin started the lease extension process as the 80 year deadline was rapidly nearing. The legal work was concluded in June 2010. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Dr Ibrahim Davies , who bought a first floor apartment in Llanwrtyd Wells in August 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Llanwrtyd Wells with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2085. Considering the 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.
In 2011 we were approached by Mr and Mrs. G Cox who, having bought a first floor apartment in Llanwrtyd Wells in February 2011. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Llanwrtyd Wells with a long lease were valued about £255,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 9 October 2096. Given that there were 71 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.