The re-sale value of a leasehold property in Carmarthen depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed ahead of the eighty year mark. Statute enables Carmarthen qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Carmarthen,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Carmarthen valuers.
Last year Sebastian, started to get near to the eighty-year mark with the lease on his leasehold flat in Carmarthen. In buying his home two decades ago, the unexpired term was of little interest. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Sebastian was able to extend his lease just ahead of time last March. Sebastian and the freeholder in the end settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £1,125.
In 2012 we were phoned by Dr Joseph White who, having completed a one bedroom apartment in Carmarthen in June 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Carmarthen with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 17 June 2081. Considering the 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Dr Aiden Rose acquired a first floor flat in Carmarthen in October 1998. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative properties in Carmarthen with an extended lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2092. Having 68 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.