The market value of Llandudno leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is below than 80 years
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Llandudno leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jude was the the leasehold proprietor of a 2 bedroom flat in Llandudno being sold with a lease of fraction over 59 years left. Jude informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2011 we were phoned by Mr and Mrs. C Thompson who, having moved into a recently refurbished apartment in Llandudno in June 2002. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar premises in Llandudno with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished on 26 August 2085. Taking into account 59 years as a residual term we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including fees.
Last month we were approach by Mr Y Rogers , who owned a basement apartment in Llandudno in October 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Llandudno with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 1 April 2105. Considering the 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.