The market value of a leasehold property in Kidwelly is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be concluded in advance of the 80 year cut off point. Current legislation enables Kidwelly qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
Lender | Requirement |
---|---|
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. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Kidwelly,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 Kidwelly valuers.
After protracted negotiations with the freeholder of her basement apartment in Kidwelly, Amelia commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction was concluded in September 2014. The landlord’s costs were kept to an absolute minimum.
Last Summer we were contacted by Mrs W Watson , who acquired a newly refurbished flat in Kidwelly in June 2008. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparable flats in Kidwelly with a long lease were valued about £215,600. The average amount of ground rent was £45 collected per annum. The lease finished on 13 April 2086. Having 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.
Last November we were phoned by Ms Mia Scott , who moved into a purpose-built flat in Kidwelly in June 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Kidwelly with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished on 9 November 2097. Given that there were 73 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.