Burry Port leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Burry Port tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Burry Port you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Burry Port leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Burry Port,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burry Port valuers.
After unsuccessful discussions with the landlord of her studio apartment in Burry Port, Daisy started the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was concluded in October 2006. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. V King who, having bought a ground floor apartment in Burry Port in February 2001. The question was if we could approximate the price could be for a 90 year lease extension. Similar residencies in Burry Port with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded on 25 November 2100. Considering the 74 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Mr T Vincent was assigned a lease of a purpose-built apartment in Burry Port in February 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Burry Port with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 4 July 2089. Given that there were 63 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.