The only way is down when it comes to Llay lease terms. Llay flats that have a residual term shorter than eighty years will de-escalate in value even faster, and the cost of extending your lease will go up.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Llay leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her studio apartment in Llay, Louise initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction completed in January 2006. The freeholder’s charges were negotiated to below 500 pounds.
Dr Leo Simon took over the lease of a studio flat in Llay in March 1997. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Llay with 100 year plus lease were valued about £240,600. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed on 1 February 2088. Considering the 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
In 2012 we were approached by Mr and Mrs. B Leroy who, having bought a basement flat in Llay in July 2001. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in Llay with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 invoiced monthly. The lease lapsed on 28 July 2077. Given that there were 51 years left we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.