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 fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed well before the eighty year threshold. Current legislation entitles Whitland qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Whitland with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with undertake Whitland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Noah was the the leasehold proprietor of a conversion apartment in Whitland on the market with a lease of a few days over 59 years unexpired. Noah informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2014 we were called by Mr and Mrs. W André who, having owned a ground floor flat in Whitland in February 2003. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical residencies in Whitland with a long lease were valued about £171,800. The average amount of ground rent was £55 collected every twelve months. The lease ran out on 19 April 2076. Given that there were 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.
Last March we were phoned by Mr and Mrs. A Miller , who purchased a first floor flat in Whitland in August 1996. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Whitland with a long lease were valued about £280,000. The average ground rent payable was £45 invoiced yearly. The lease expired on 12 February 2096. Having 70 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.