Llandudno leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Llandudno enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Llandudno you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Llandudno leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
In recent months Hunter, started to get close to the 80-year mark with the lease on his purpose- built flat in Llandudno. Having purchased his flat two decades ago, the lease term was of little significance. Fortunately, he became aware that he needed to take action soon on a lease extension. Hunter arranged for a lease extension just under the wire in September. Hunter and the landlord eventually agreed on the final figure of £6,000 . If the lease had slipped lower than eighty years, the sum would have escalated by a minimum £1,125.
In 2011 we were called by Dr U Vincent who, having purchased a basement flat in Llandudno in January 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Llandudno with an extended lease were worth £300,000. The average amount of ground rent was £50 billed annually. The lease ended on 17 July 2102. Taking into account 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Ms I Adams acquired a purpose-built flat in Llandudno in November 1999. The question was if we could estimate the premium could be to extend the lease by 90 years. Similar properties in Llandudno with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected quarterly. The lease concluded in 2091. Given that there were 65 years remaining we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.