Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Carmarthen. Clearly, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Carmarthen have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give due attention before delaying your Carmarthen lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 landlord in Carmarthen,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 in-depth market knowledge and the close ties they enjoy with Carmarthen valuers.
Liam owned a 2 bedroom flat in Carmarthen on the market with a lease of a few days over 61 years outstanding. Liam informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Liam to exercise his statutory right. Liam procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Mr and Mrs. K Watson completed a one bedroom apartment in Carmarthen in July 2012. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative flats in Carmarthen with an extended lease were valued around £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 7 February 2100. Taking into account 74 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2011 we were e-mailed by Mr C Gunderson who, having moved into a purpose-built flat in Carmarthen in March 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Carmarthen with 100 year plus lease were worth £166,400. The average ground rent payable was £60 invoiced monthly. The lease finished in 2080. Given that there were 54 years remaining we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.