It’s a harsh truth that a Carmarthen residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Carmarthen property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Carmarthen will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Carmarthen with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Carmarthen,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Carmarthen valuers.
Zachary was the the leasehold owner of a high value flat in Carmarthen being marketed with a lease of fraction over 72 years outstanding. Zachary on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to 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 Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Last month we were phoned by Mr and Mrs. I Sharif , who moved into a one bedroom apartment in Carmarthen in August 1997. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Carmarthen with an extended lease were worth £256,600. The average amount of ground rent was £60 collected quarterly. The lease lapsed on 20 August 2076. Given that there were 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including legals.
Dr A Fournier owned a one bedroom flat in Carmarthen in August 2004. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar properties in Carmarthen with a long lease were worth £218,000. The average ground rent payable was £45 invoiced annually. The lease finished in 2087. Taking into account 63 years left we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including professional charges.