The closer a domestic lease in Llanelli gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Llanelli will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Llanelli 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.
Trailing unsuccessful negotiations with the landlord of her ground floor flat in Llanelli, Georgia initiated the lease extension process as the 80 year deadline was quickly advancing. The lease extension was concluded in April 2012. The freeholder’s charges were kept to an absolute minimum.
Last year we were called by Mr Finn Jones , who took over the lease of a ground floor apartment in Llanelli in January 2001. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Llanelli with an extended lease were worth £200,000. The average amount of ground rent was £50 collected yearly. The lease lapsed in 2103. Given that there were 78 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Last Christmas we were called by Dr Aiden Torres , who purchased a basement apartment in Llanelli in April 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Identical residencies in Llanelli with a long lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded on 9 February 2092. Considering the 67 years remaining we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus professional charges.