The market 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 a lease extension can increase substantially once the unexpired lease term is below than eighty years
Leasehold residencies in Whitland with over one hundred years left 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Whitland can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 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.
Oscar was the the leasehold proprietor of a 2 bedroom apartment in Whitland on the market with a lease of just over sixty years unexpired. Oscar informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert advice and secured an acceptable deal informally and readily saleable.
In 2011 we were called by Mr and Mrs. O Watson who, having took over the lease of a purpose-built flat in Whitland in September 2005. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Whitland with a long lease were worth £189,000. The mid-range ground rent payable was £55 billed yearly. The lease end date was on 10 November 2079. Having 53 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Mr and Mrs. Y Lee completed a one bedroom flat in Whitland in November 1995. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable premises in Whitland with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 4 March 2099. Taking into account 73 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.