It’s an underpublicised truth that a Llandudno residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Llandudno property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Llandudno will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Llandudno,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llandudno valuers.
Half a year ago Owen, came critically close to the eighty-year threshold with the lease on his studio flat in Llandudno. Having bought his property twenty years ago, the length of the lease was of minimal significance. by good luck, he recognised he needed to take steps soon on a lease extension. Owen extended the lease at the eleventh hour in June. Owen and the freeholder via the managing agents ultimately settled on an amount of £5,500 . If the lease had slid below 80 years, the premium would have increased by a minimum £1,025.
Last Summer we were called by Mrs G Harris , who completed a first floor apartment in Llandudno in March 2011. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative properties in Llandudno with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 invoiced annually. The lease expiry date was in 2086. Considering the 60 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 plus expenses.
In 2010 we were phoned by Dr Benjamin Bell who, having completed a studio apartment in Llandudno in March 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative residencies in Llandudno with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2106. Having 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.