The value of Kidwelly leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Kidwelly leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide 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.
Half a year ago Dylan, came precariously close to the 80-year mark with the lease on his purpose- built apartment in Kidwelly. In buying his home two decades ago, the unexpired term was of minimal interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Dylan extended the lease just ahead of time last September. Dylan and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If the lease had dipped lower than 80 years, the premium would have increased by a minimum £850.
Last Autumn we were e-mailed by Mr and Mrs. K Adams , who owned a newly refurbished apartment in Kidwelly in April 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical properties in Kidwelly with 100 year plus lease were valued about £290,000. The average ground rent payable was £60 billed quarterly. The lease lapsed in 2105. Considering the 80 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Last Spring we were approach by Dr Y Smith , who was assigned a lease of a basement flat in Kidwelly in August 2002. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Kidwelly with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2085. Given that there were 60 years remaining we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.