Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Llwyngwril. Clearly, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Llwyngwril have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give careful consideration before putting off your Llwyngwril lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Llwyngwril with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Llwyngwril can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 in-depth market knowledge 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.
In the wake of eight months of protracted discussions with the freeholder of her ground floor apartment in Llwyngwril, Olivia initiated the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work completed in February 2012. The freeholder’s charges were kept to an absolute minimum.
Mrs U Sánchez owned a first floor apartment in Llwyngwril in June 1997. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Llwyngwril with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed per annum. The lease termination date was on 13 April 2093. Considering the 68 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2012 we were approached by Mr and Mrs. F Baker who, having acquired a first floor apartment in Llwyngwril in January 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Llwyngwril with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced quarterly. The lease lapsed in 2104. Having 79 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.