The re-sale value of a leasehold property in Whitland is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year threshold. Statute enables Whitland qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Whitland can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Whitland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October George, came dangerously near to the 80-year mark with the lease on his two bedroom apartment in Whitland. Having bought his home two decades ago, the unexpired term was of little significance. Fortunately, he became aware that he needed to take action soon on a lease extension. George arranged for a lease extension just in the nick of time in July. George and the freeholder via the management company subsequently settled on a premium of £6,000 . If the lease had slipped below 80 years, the price would have increased by at least £1,100.
Last month we were contacted by Mr and Mrs. U Moreau , who acquired a first floor apartment in Whitland in September 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Whitland with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated on 24 April 2104. Given that there were 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
Last Spring we were e-mailed by Mr and Mrs. B Mercier , who acquired a basement apartment in Whitland in June 2001. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Whitland with an extended lease were in the region of £275,000. The average amount of ground rent was £65 billed quarterly. The lease elapsed in 2093. Having 68 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.