The nearer a residential lease in Llanymynech gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Llanymynech will qualify for this right; however a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years remaining is worth approximately 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 ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Llanymynech 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.
Subsequent to unsuccessful negotiations with the freeholder of her purpose-built apartment in Llanymynech, Millie initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction was concluded in July 2009. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. L Smith took over the lease of a purpose-built apartment in Llanymynech in April 2007. We are asked if we could approximate the price would be for a 90 year lease extension. Similar properties in Llanymynech with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2095. Given that there were 70 years outstanding we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus professional charges.
In 2012 we were approached by Mr and Mrs. T Gray who, having purchased a basement flat in Llanymynech in March 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Llanymynech with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease finished on 22 May 2075. Taking into account 50 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus fees.