Kidwelly leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Kidwelly will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 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 |
|---|---|
| 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. |
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Eli owned a studio flat in Kidwelly being marketed with a lease of just over fifty eight years left. Eli informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.
In 2009 we were contacted by Dr V Gray who, having owned a first floor apartment in Kidwelly in February 2009. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Kidwelly with a long lease were in the region of £245,000. The average ground rent payable was £50 invoiced quarterly. The lease lapsed on 1 July 2094. Having 68 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last May we were phoned by Dr Hunter Roberts , who took over the lease of a basement apartment in Kidwelly in April 2004. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable properties in Kidwelly with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended in 2105. Given that there were 79 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.