With a domestic leasehold premises in Lampeter, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Lampeter with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has under eighty years left, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Lampeter,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 experience and the close ties they enjoy with Lampeter valuers.
18 months ago Caleb, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Lampeter. Having purchased his property two decades ago, the length of the lease was of minimal bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Caleb arranged for a lease extension at the eleventh hour in June. Caleb and the landlord who owned the flat above in the end settled on a premium of £5,500 . If he had missed the deadline, the price would have increased by a minimum £875.
In 2009 we were approached by Mr and Mrs. C Moore who, having bought a ground floor apartment in Lampeter in April 2006. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative premises in Lampeter with an extended lease were valued about £205,000. The average ground rent payable was £50 billed every twelve months. The lease ended on 3 October 2103. Having 79 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Last month we were phoned by Mr and Mrs. C Laurent , who moved into a ground floor apartment in Lampeter in January 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Lampeter with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected annually. The lease expiry date was in 2092. Having 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.