The value of Llwyngwril leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
Leasehold residencies in Llwyngwril with in excess of one hundred years left on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Llwyngwril,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Llwyngwril valuers.
Last year Kai, started to get close to the 80-year mark with the lease on his one bedroom flat in Llwyngwril. In buying his property two decades ago, the unexpired term was of little significance. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Kai was able to extend his lease just ahead of time in January. Kai and the freeholder ultimately settled on sum of £6,000 . If the lease had dropped to less than 80 years, the sum would have gone up by a minimum £975.
In 2014 we were phoned by Mr and Mrs. O Harris who, having purchased a recently refurbished apartment in Llwyngwril in March 2009. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable properties in Llwyngwril with an extended lease were valued around £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2080. Given that there were 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.
In 2010 we were phoned by Mrs O Jones who, having purchased a purpose-built apartment in Llwyngwril in February 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Llwyngwril with an extended lease were worth £227,800. The mid-range ground rent payable was £45 collected per annum. The lease concluded on 28 July 2091. Given that there were 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.