Carmarthen leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Carmarthen will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Carmarthen with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Carmarthen,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Carmarthen valuers.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Carmarthen, Alicia commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction was finalised in August 2010. The freeholder’s fees were restricted to a tad over 600 pounds.
Last year we were called by Mr Milo Thompson , who purchased a ground floor apartment in Carmarthen in January 1996. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative properties in Carmarthen with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 invoiced yearly. The lease elapsed in 2075. Considering the 50 years left we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 plus legals.
Last August we were contacted by Mr and Mrs. N Bernard , who completed a purpose-built flat in Carmarthen in September 2009. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Carmarthen with 100 year plus lease were worth £203,200. The average ground rent payable was £65 collected quarterly. The lease expired on 12 September 2086. Given that there were 61 years left we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including legals.