Whitland leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Whitland residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Whitland you should investigate if your lease has between seventy and 90 years left. There are good reasons why a Whitland leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with handle 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 lawyer we work with provide it.
During the course of the last few months Harrison, started to get close to the 80-year mark with the lease on his two bedroom apartment in Whitland. In buying his home two decades ago, the unexpired term was of little importance. Thankfully, he noticed he needed to take action soon on Extending the lease. Harrison extended the lease just ahead of time in June. Harrison and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,150.
In 2010 we were approached by Mrs G Vincent who, having moved into a first floor flat in Whitland in November 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Whitland with a long lease were worth £295,000. The mid-range ground rent payable was £45 billed yearly. The lease lapsed in 2098. Having 74 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Autumn we were called by Mr and Mrs. U Hill , who moved into a purpose-built flat in Whitland in November 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Whitland with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed yearly. The lease end date was on 1 January 2087. Having 63 years remaining we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including legals.