With a residential leasehold premises in Kidwelly, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Kidwelly with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has below 80 years remaining, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Engaging our service gives you enhanced control over the value of your Kidwelly leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a high value apartment in Kidwelly being sold with a lease of a little over 59 years left. Stanley on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last Autumn we were called by Mr K James , who owned a purpose-built apartment in Kidwelly in October 1999. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Kidwelly with a long lease were worth £255,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed in 2096. Having 70 years remaining we estimated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 plus costs.
In 2013 we were called by Mr and Mrs. S Rogers who, having took over the lease of a purpose-built apartment in Kidwelly in August 1996. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical premises in Kidwelly with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease finished on 15 April 2076. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including fees.