There is no doubt about it a leasehold property in Fishguard is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Fishguard will qualify for this right; nevertheless a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Fishguard with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Fishguard,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fishguard valuers.
Lewis owned a studio apartment in Fishguard being sold with a lease of just over fifty eight years left. Lewis informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and secured satisfactory resolution informally and readily saleable.
Last July we were e-mailed by Dr Tommy Khan , who completed a basement flat in Fishguard in October 2002. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Fishguard with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 billed yearly. The lease terminated on 5 September 2099. Having 74 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Last year we were contacted by Dr Jayden Nguyen , who moved into a ground floor apartment in Fishguard in June 1998. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparable residencies in Fishguard with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced annually. The lease termination date was in 2088. Given that there were 63 years left we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.