The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Llanybydder may extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Llanybydder lease extension. Shelving the costs today simply increases the amount you will ultimately be required to pay for a lease extension.
Leasehold properties in Llanybydder with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Llanybydder,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanybydder valuers.
Last year Alexander, started to get near to the 80-year mark with the lease on his garden apartment in Llanybydder. In buying his property 19 years ago, the unexpired term was of no relevance. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Alexander arranged for a lease extension at the eleventh hour in May. Alexander and the freeholder via the management company eventually settled on an amount of £5,500 . If the lease had slipped lower than eighty years, the sum would have gone up by at least £1,050.
Last Summer we were approach by Mr and Mrs. F Norbert , who acquired a newly refurbished apartment in Llanybydder in May 2007. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Llanybydder with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish on 7 March 2094. Taking into account 69 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Last Spring we were called by Mrs Isabelle Gómez , who moved into a newly refurbished apartment in Llanybydder in October 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Llanybydder with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease ran out on 23 November 2105. Given that there were 80 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.