With a long leasehold property in Kidwelly, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Kidwelly with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years left, under the current Act the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Kidwelly,the lease extension lawyers 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 Kidwelly valuers.
Half a year ago Oliver, came dangerously close to the 80-year mark with the lease on his ground floor apartment in Kidwelly. In buying his home two decades ago, the length of the lease was of minimal importance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Oliver was able to extend his lease at the eleventh hour in September. Oliver and the landlord eventually agreed on a premium of £5,000 . If the lease had slid lower than 80 years, the sum would have increased by at least £1,050.
Last Summer we were called by Mr and Mrs. C Girard , who moved into a ground floor apartment in Kidwelly in July 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable properties in Kidwelly with an extended lease were worth £191,000. The average amount of ground rent was £65 billed annually. The lease ended in 2083. Considering the 58 years remaining we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including legals.
In 2010 we were e-mailed by Mr and Mrs. B Bonnet who, having was assigned a lease of a garden apartment in Kidwelly in March 2001. We are asked if we could approximate the price could be for a 90 year lease extension. Similar properties in Kidwelly with a long lease were worth £250,000. The average ground rent payable was £50 billed quarterly. The lease finished in 2094. Given that there were 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.