Unfortunately that a Carmarthen residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Carmarthen property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Carmarthen will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Carmarthen,the lease extension experts 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 Carmarthen valuers.
Freddie was the the leasehold proprietor of a high value flat in Carmarthen on the market with a lease of just over sixty years left. Freddie informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2010 we were approached by Mrs Melissa Young who, having purchased a ground floor flat in Carmarthen in November 2000. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar properties in Carmarthen with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected every twelve months. The lease finished on 11 January 2081. Having 56 years left we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including costs.
In 2013 we were phoned by Ms B Jones who, having was assigned a lease of a recently refurbished flat in Carmarthen in October 2007. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Carmarthen with 100 year plus lease were in the region of £237,600. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 12 May 2092. Taking into account 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.