For those whose Kilgetty home is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Kilgetty leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Nathan owned a high value flat in Kilgetty being sold with a lease of fraction over sixty years left. Nathan informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were phoned by Dr Y Norbert who, having moved into a recently refurbished apartment in Kilgetty in August 2003. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Kilgetty with an extended lease were valued about £270,000. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2101. Taking into account 75 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last month we were phoned by Mr and Mrs. O Moreau , who acquired a ground floor flat in Kilgetty in October 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Kilgetty with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 billed yearly. The lease concluded in 2081. Having 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.