The value of Whitland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than 80 years
Leasehold premises in Whitland with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Whitland can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 in-depth market knowledge procuring Whitland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her garden flat in Whitland, Hannah started the lease extension process as the 80 year deadline was rapidly nearing. The legal work completed in August 2012. The landlord’s costs were negotiated to a tad over 600 GBP.
Dr Noah Morgan acquired a studio apartment in Whitland in April 2002. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Whitland with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended in 2106. Given that there were 80 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Mr Joshua Rose was assigned a lease of a one bedroom flat in Whitland in February 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Whitland with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2095. Having 69 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.