Kidwelly leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, 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 additional value that a lease extension will add to the property. Leasehold owners in Kidwelly will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Kidwelly with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Kidwelly leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Callum, came precariously near to the eighty-year threshold with the lease on his basement apartment in Kidwelly. Having purchased his home 18 years ago, the unexpired term was of minimal concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Callum was able to extend his lease just ahead of time in April. Callum and the landlord subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,025.
Last year we were approach by Mr and Mrs. U Adams , who purchased a one bedroom apartment in Kidwelly in March 2010. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Kidwelly with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 collected monthly. The lease ended in 2085. Taking into account 59 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Mr and Mrs. P Gunderson moved into a first floor apartment in Kidwelly in February 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Kidwelly with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 26 June 2096. Considering the 70 years remaining we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 not including fees.