The market value of Carmarthen leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is below than eighty years
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Carmarthen leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her ground floor apartment in Carmarthen, Jennifer started the lease extension process as the 80 year mark was rapidly approaching. The lease extension was concluded in May 2006. The freeholder’s costs were negotiated to less than 650 pounds.
Last Spring we were phoned by Mr Jack Bernard , who took over the lease of a first floor flat in Carmarthen in July 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Carmarthen with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 billed monthly. The lease ended in 2101. Given that there were 75 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Mrs K Torres acquired a ground floor apartment in Carmarthen in June 2009. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical homes in Carmarthen with an extended lease were valued around £168,800. The average ground rent payable was £60 billed per annum. The lease elapsed on 16 July 2081. Considering the 55 years unexpired we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.