Llay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Llay enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Llay you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Llay with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Llay can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Llay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her garden apartment in Llay, Amber started the lease extension process as the eighty year deadline was fast advancing. The lease extension was concluded in October 2008. The landlord’s costs were negotiated to below 550 pounds.
Last Christmas we were approach by Mr and Mrs. E García , who moved into a recently refurbished flat in Llay in August 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Llay with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed quarterly. The lease ran out in 2097. Considering the 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last Autumn we were contacted by Dr D Martinez , who moved into a one bedroom apartment in Llay in February 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Llay with an extended lease were in the region of £233,200. The average ground rent payable was £60 billed annually. The lease expired on 21 July 2086. Given that there were 61 years as a residual term we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.