Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Whitland. Inevitably, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Whitland have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give due attention before delaying your Whitland lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Whitland with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
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 wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted negotiations with the landlord of her two bedroom apartment in Whitland, Ashleigh commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension completed in April 2007. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were approached by Mr Lewis Lefebvre who, having took over the lease of a ground floor flat in Whitland in March 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Whitland with a long lease were worth £166,800. The average ground rent payable was £50 collected annually. The lease concluded on 8 November 2075. Given that there were 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus costs.
Last Winter we were called by Mr Blake Jones , who bought a one bedroom apartment in Whitland in March 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Whitland with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced monthly. The lease finished on 14 February 2095. Given that there were 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.