The closer a domestic lease in Burry Port nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Burry Port will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Burry Port with in excess of one hundred 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Burry Port,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burry Port valuers.
Ollie owned a 2 bedroom apartment in Burry Port being sold with a lease of a few days over 72 years left. Ollie informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2013 we were e-mailed by Mrs G Bailey who, having moved into a basement apartment in Burry Port in June 1998. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative properties in Burry Port with a long lease were worth £166,800. The average ground rent payable was £50 billed monthly. The lease termination date was on 14 July 2076. Taking into account 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.
Last Spring we were called by Mrs Hannah Reed , who purchased a first floor apartment in Burry Port in November 1997. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Burry Port with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out on 12 August 2096. Having 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.