The value of Llanrwst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than eighty years
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Llanrwst 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.
In recent months Toby, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Llanrwst. Having purchased his home two decades ago, the length of the lease was of no concern. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Toby was able to extend his lease just under the wire last June. Toby and the landlord subsequently settled on the final figure of £6,000 . If the lease had slipped below eighty years, the figure would have become more costly by a minimum £1,100.
Last year we were called by Dr E Harris , who completed a basement apartment in Llanrwst in February 2003. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Llanrwst with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2103. Considering the 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Dr Harry Scott acquired a one bedroom apartment in Llanrwst in February 2005. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar flats in Llanrwst with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished in 2083. Having 59 years left we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.