Kidwelly leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Kidwelly will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Kidwelly 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.
Last year Owen, started to get near to the eighty-year threshold with the lease on his studio flat in Kidwelly. Having bought his property 18 years previously, the lease term was of no concern. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Owen arranged for a lease extension just under the wire in January. Owen and the landlord ultimately agreed on the final figure of £6,000 . If he not met the deadline, the premium would have gone up by at least £925.
In 2012 we were contacted by Ms Natasha Baker who, having bought a one bedroom apartment in Kidwelly in April 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Kidwelly with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 invoiced monthly. The lease lapsed in 2078. Given that there were 53 years remaining we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of costs.
Ms R Brown purchased a garden flat in Kidwelly in March 2007. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar properties in Kidwelly with 100 year plus lease were worth £225,400. The average ground rent payable was £45 invoiced monthly. The lease expiry date was on 10 October 2089. Considering the 64 years unexpired we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus costs.