The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Llanybydder have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Llanybydder lease extension. Postponing the costs now simply escalates the price you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Yorkshire 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. |
The conveyancers that we work with handle Llanybydder lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Theo was the the leasehold owner of a 2 bedroom apartment in Llanybydder being sold with a lease of fraction over 61 years remaining. Theo informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr U Thomas bought a one bedroom flat in Llanybydder in September 2008. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Llanybydder with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish in 2098. Considering the 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2012 we were e-mailed by Mr Nathan Smith who, having moved into a basement flat in Llanybydder in July 1995. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Llanybydder with 100 year plus lease were valued around £256,600. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 12 August 2078. Given that there were 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 exclusive of costs.