Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Llanymynech. Inevitably, the period of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Llanymynech have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due attention before putting off your Llanymynech lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Llanymynech with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors 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.
After unsuccessful negotiations with the landlord of her purpose-built flat in Llanymynech, Kate commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was concluded in January 2008. The landlord’s costs were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. H Vincent , who moved into a purpose-built apartment in Llanymynech in July 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Llanymynech with an extended lease were in the region of £227,800. The average ground rent payable was £45 billed monthly. The lease ended on 5 September 2091. Taking into account 65 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Mr and Mrs. O Simon took over the lease of a garden flat in Llanymynech in August 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Llanymynech with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed quarterly. The lease termination date was on 3 October 2102. Considering the 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.