Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Carmarthen. Inevitably, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Carmarthen have the right to extend the lease for an additional 90 years under legislation. You should give careful consideration before delaying your Carmarthen lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Carmarthen with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder 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.
John was the the leasehold proprietor of a studio apartment in Carmarthen being marketed with a lease of fraction over sixty years remaining. John on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. D Michel owned a basement apartment in Carmarthen in February 2005. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative properties in Carmarthen with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 collected yearly. The lease concluded in 2091. Considering the 66 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
In 2013 we were e-mailed by Dr N Robinson who, having bought a garden flat in Carmarthen in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Carmarthen with a long lease were valued around £275,000. The average ground rent payable was £55 billed monthly. The lease ended in 2102. Taking into account 77 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.