Kidwelly leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Kidwelly will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Kidwelly,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 Kidwelly valuers.
Last year Kian, came very near to the eighty-year threshold with the lease on his leasehold flat in Kidwelly. Having bought his property two decades ago, the length of the lease was of no concern. by good luck, he recognised he needed to take action soon on a lease extension. Kian was able to extend his lease at the eleventh hour last July. Kian and the freeholder subsequently agreed on a premium of £6,000 . If the lease had gone below 80 years, the sum would have gone up by at least £1,100.
Mr T Taylor was assigned a lease of a studio flat in Kidwelly in August 1996. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar properties in Kidwelly with a long lease were worth £242,600. The average amount of ground rent was £45 collected every twelve months. The lease terminated in 2093. Having 67 years unexpired we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.
In 2009 we were called by Mr V White who, having owned a one bedroom apartment in Kidwelly in July 1997. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Kidwelly with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2104. Given that there were 78 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.