Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Llandudno. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Llandudno have the legal entitlement to extend the lease for a further 90 years under statute. Do give due consideration before delaying your Llandudno lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold premises in Llandudno with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Llandudno 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 lawyer we work with provide it.
Subsequent to protracted discussions with the freeholder of her two bedroom flat in Llandudno, Holly initiated the lease extension process as the eighty year mark was rapidly nearing. The transaction was finalised in March 2014. The freeholder’s fees were restricted to about 450 GBP.
Last Autumn we were contacted by Mr T Khan , who purchased a recently refurbished apartment in Llandudno in July 2002. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable residencies in Llandudno with 100 year plus lease were valued around £198,800. The average ground rent payable was £55 collected yearly. The lease lapsed in 2081. Considering the 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.
In 2013 we were e-mailed by Dr P Norbert who, having was assigned a lease of a purpose-built flat in Llandudno in February 2002. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Llandudno with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease expiry date was on 27 July 2101. Considering the 75 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.