Llanybydder leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in Llanybydder will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Llanybydder with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Llanybydder,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llanybydder valuers.
Off the back of lengthy negotiations with the landlord of her first floor flat in Llanybydder, Jennifer started the lease extension process just as her lease was coming close to the critical 80-year mark. The legal work was concluded in April 2007. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were contacted by Dr V Nelson , who took over the lease of a one bedroom flat in Llanybydder in March 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Llanybydder with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 23 August 2082. Given that there were 57 years left we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
In 2012 we were phoned by Mr and Mrs. F Martin who, having completed a ground floor apartment in Llanybydder in September 1999. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar flats in Llanybydder with a long lease were worth £245,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed in 2093. Taking into account 68 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.