The market value of a leasehold property in Llandudno is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed ahead of the eighty year threshold. Leasehold Reform legislation enables Llandudno qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
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 terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jack, started to get near to the 80-year threshold with the lease on his basement apartment in Llandudno. Having bought his property 18 years ago, the unexpired term was of little relevance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Jack arranged for a lease extension just ahead of time last May. Jack and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If the lease had slipped below 80 years, the figure would have increased by a minimum £850.
Last Autumn we were e-mailed by Mr and Mrs. G Girard , who acquired a one bedroom apartment in Llandudno in May 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Llandudno with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 4 March 2089. Having 63 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.
Last Autumn we were phoned by Mr and Mrs. V Johnson , who completed a first floor flat in Llandudno in February 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable flats in Llandudno with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 billed every twelve months. The lease terminated on 6 January 2078. Given that there were 52 years unexpired we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.