It’s an underpublicised truth that a Llandudno residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Llandudno property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Llandudno will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Llandudno with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Half a year ago Jude, started to get close to the 80-year mark with the lease on his garden apartment in Llandudno. Having bought his property two decades ago, the lease term was of little significance. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Jude arranged for a lease extension just in the nick of time last April. Jude and the landlord in the end agreed on an amount of £5,500 . If the lease had slid below 80 years, the price would have gone up by at least £1,050.
In 2014 we were contacted by Mr and Mrs. H Ward who, having completed a studio flat in Llandudno in July 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable flats in Llandudno with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease came to a finish in 2079. Considering the 54 years unexpired we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus expenses.
Last Christmas we were e-mailed by Dr Jamie Girard , who purchased a garden apartment in Llandudno in April 1996. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Llandudno with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2099. Given that there were 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.