The market value of a leasehold property in Llwyngwril is impacted by how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed in advance of the eighty year mark. Current legislation entitles Llwyngwril qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Llwyngwril can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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 Llwyngwril lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Lucas, started to get close to the 80-year mark with the lease on his purpose- built flat in Llwyngwril. Having bought his property two decades ago, the length of the lease was of little interest. Luckily, he recognised he needed to take action soon on Extending the lease. Lucas extended the lease at the eleventh hour in September. Lucas and the freeholder via the managing agents subsequently settled on sum of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £1,025.
In 2013 we were phoned by Ms W Ward who, having owned a basement flat in Llwyngwril in January 1996. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable properties in Llwyngwril with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated in 2098. Considering the 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2011 we were called by Mr and Mrs. U López who, having was assigned a lease of a one bedroom flat in Llwyngwril in November 2000. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Llwyngwril with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed in 2078. Given that there were 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus expenses.