There is no doubt about it a leasehold flat or house in Llay is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Llay will meet the qualifying criteria; however a conveyancer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
| 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 |
The conveyancing solicitors that we work with undertake Llay 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 lawyer we work with provide it.
In the wake of 6 months of unsuccessful negotiations with the landlord of her ground floor flat in Llay, Sarah initiated the lease extension process as the 80 year threshold was fast advancing. The transaction was concluded in August 2008. The freeholder’s costs were restricted to below six hundred pounds.
Mr and Mrs. T Lefebvre purchased a basement flat in Llay in September 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Llay with 100 year plus lease were worth £184,000. The average ground rent payable was £55 billed yearly. The lease concluded on 23 June 2078. Given that there were 53 years remaining we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.
Dr P Patel acquired a purpose-built flat in Llay in January 2002. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar residencies in Llay with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2098. Considering the 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.