Whitland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Whitland tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Whitland you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Whitland leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the freeholder of her ground floor flat in Whitland, Emily initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was concluded in January 2005. The freeholder’s costs were negotiated to about 650 pounds.
In 2014 we were phoned by Mrs E Laurent who, having acquired a first floor apartment in Whitland in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative homes in Whitland with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2088. Having 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.
Last Winter we were called by Mr L White , who was assigned a lease of a studio flat in Whitland in April 1998. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar flats in Whitland with a long lease were in the region of £181,600. The average amount of ground rent was £55 invoiced monthly. The lease ran out in 2077. Considering the 52 years left we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.