On the balance of probabilities where you own a flat in Kilgetty you actually own a long leasehold interest over your property
Leasehold premises in Kilgetty with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Kilgetty,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kilgetty valuers.
Ali was the the leasehold proprietor of a conversion flat in Kilgetty being sold with a lease of a few days over 61 years outstanding. Ali informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were contacted by Dr Eli Clarke who, having was assigned a lease of a first floor apartment in Kilgetty in April 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Kilgetty with an extended lease were worth £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease termination date was in 2077. Given that there were 51 years left we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including costs.
Mr C Laurent acquired a first floor flat in Kilgetty in February 2002. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative properties in Kilgetty with an extended lease were worth £210,600. The average amount of ground rent was £45 collected every twelve months. The lease end date was in 2088. Given that there were 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.