On the balance of probabilities where you own a flat in Llandudno you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Retaining our service gives you enhanced control over the value of your Llandudno leasehold, as your property will be more valuable and saleable in relation to the 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.
Alex was the the leasehold owner of a conversion flat in Llandudno being sold with a lease of a few days over 72 years remaining. Alex on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2012 we were contacted by Mr and Mrs. J Moreau who, having purchased a ground floor flat in Llandudno in June 2012. The question was if we could approximate the premium could be to prolong the lease by ninety years. Similar flats in Llandudno with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease expiry date was on 14 August 2091. Considering the 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.
Last Winter we were called by Mr I Miller , who purchased a ground floor apartment in Llandudno in February 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Llandudno with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease finished on 7 September 2080. Having 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus legals.