When it comes to residential leasehold property in Kidwelly, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Kidwelly with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has less than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Kidwelly,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kidwelly valuers.
Trailing lengthy correspondence with the landlord of her purpose-built apartment in Kidwelly, Alisha initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The legal work was concluded in September 2012. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Dr Andrew Bennett , who completed a recently refurbished flat in Kidwelly in November 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Kidwelly with a long lease were worth £191,000. The average ground rent payable was £65 invoiced per annum. The lease ended on 8 July 2084. Taking into account 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including professional charges.
Mr and Mrs. G Brooks was assigned a lease of a ground floor apartment in Kidwelly in July 1998. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical properties in Kidwelly with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated on 9 August 2095. Taking into account 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.