Unfortunately that a Llwyngwril residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Llwyngwril property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Llwyngwril will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Llwyngwril 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 conveyancing solicitor we work with provide it.
After protracted negotiations with the freeholder of her studio flat in Llwyngwril, Rosie started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in March 2006. The landlord’s charges were negotiated to slightly above four hundred GBP.
Last Spring we were phoned by Mr and Mrs. R Howard , who acquired a purpose-built flat in Llwyngwril in May 2000. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical homes in Llwyngwril with an extended lease were valued about £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 8 March 2085. Given that there were 59 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
In 2014 we were e-mailed by Dr Alfie Ramírez who, having moved into a first floor apartment in Llwyngwril in November 2007. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Llwyngwril with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed in 2096. Considering the 70 years remaining we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including expenses.