Chances are that where you own a flat in Burry Port you actually own a long leasehold interest over your property
Leasehold properties in Burry Port with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Burry Port 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.
Jasper owned a studio apartment in Burry Port being marketed with a lease of a little over sixty years left. Jasper informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Last Spring we were e-mailed by Dr P Walker , who acquired a purpose-built apartment in Burry Port in May 2005. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar properties in Burry Port with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2101. Given that there were 76 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Christmas we were e-mailed by Mr and Mrs. C Gunderson , who purchased a garden flat in Burry Port in June 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Burry Port with an extended lease were in the region of £252,800. The mid-range ground rent payable was £65 billed monthly. The lease concluded on 11 August 2090. Having 65 years remaining we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.