On the balance of probabilities if you own a flat in Kidwelly you actually own a long leasehold interest over your property
Leasehold premises in Kidwelly with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Jamie owned a conversion apartment in Kidwelly being sold with a lease of a little over 72 years left. Jamie informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were e-mailed by Mr and Mrs. F Simon who, having completed a one bedroom apartment in Kidwelly in November 2007. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar flats in Kidwelly with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 collected annually. The lease end date was on 4 June 2080. Taking into account 54 years left we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including professional charges.
Mr and Mrs. S Wilson completed a purpose-built apartment in Kidwelly in August 2011. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar premises in Kidwelly with an extended lease were worth £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease expired in 2091. Taking into account 65 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.