Carmarthen leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Carmarthen will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Carmarthen,the lease extension lawyers that we work with will always be willing 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.
Following protracted correspondence with the landlord of her first floor flat in Carmarthen, Emma started the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension completed in August 2006. The freeholder’s fees were negotiated to less than 450 GBP.
Mr M Sánchez completed a first floor flat in Carmarthen in November 2007. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative homes in Carmarthen with an extended lease were in the region of £186,000. The average amount of ground rent was £65 collected quarterly. The lease lapsed in 2083. Taking into account 58 years remaining we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including fees.
In 2011 we were called by Mr and Mrs. M Michel who, having purchased a one bedroom apartment in Carmarthen in May 2002. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable homes in Carmarthen with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease termination date was in 2094. Considering the 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.