Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kidwelly. Inevitably, the length of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Kidwelly have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Kidwelly lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Kidwelly leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her studio apartment in Kidwelly, Molly started the lease extension process as the 80 year threshold was quickly nearing. The transaction was finalised in July 2010. The freeholder’s fees were negotiated to less than 500 pounds.
Last Christmas we were phoned by Mr and Mrs. A Mason , who bought a studio apartment in Kidwelly in October 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Kidwelly with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 invoiced annually. The lease concluded on 28 October 2090. Having 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2014 we were phoned by Dr F Rodríguez who, having bought a one bedroom apartment in Kidwelly in April 2005. We are asked if we could estimate the price would be for a 90 year lease extension. Similar flats in Kidwelly with a long lease were valued about £275,000. The average ground rent payable was £55 invoiced per annum. The lease finished on 27 February 2101. Having 76 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.