With a long leasehold premises in Llanrwst, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Llanrwst with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Llanrwst with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
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 conveyancer we work with provide it.
Sam was the the leasehold proprietor of a 2 bedroom apartment in Llanrwst on the market with a lease of fraction over 61 years left. Sam on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last year we were phoned by Mr T Martínez , who owned a ground floor apartment in Llanrwst in October 2008. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable premises in Llanrwst with a long lease were in the region of £280,000. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2103. Given that there were 78 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
In 2012 we were approached by Mr Jamie González who, having moved into a ground floor apartment in Llanrwst in April 1999. The question was if we could approximate the price would be for a ninety year lease extension. Comparable homes in Llanrwst with a long lease were in the region of £191,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed in 2083. Considering the 58 years unexpired we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of fees.