Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Llwyngwril. Clearly, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Llwyngwril have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful consideration before putting off your Llwyngwril lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless 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 experience and the close ties they enjoy with Llwyngwril valuers.
Jacob was the the leasehold proprietor of a conversion apartment in Llwyngwril on the market with a lease of fraction over fifty eight years left. Jacob on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2011 we were e-mailed by Dr Eliot Leroy who, having purchased a one bedroom flat in Llwyngwril in February 1998. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Llwyngwril with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 invoiced annually. The lease came to a finish on 12 April 2086. Given that there were 61 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.
In 2010 we were approached by Ms Y Pérez who, having completed a one bedroom apartment in Llwyngwril in November 2002. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Llwyngwril with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2097. Given that there were 72 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.