With a long leasehold premises in Kilgetty, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Kilgetty with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years outstanding, under the current statute the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Kilgetty with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Kilgetty lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Kyle owned a conversion apartment in Kilgetty being sold with a lease of just over 61 years left. Kyle on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Dr U Jones who, having purchased a purpose-built apartment in Kilgetty in May 2010. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Kilgetty with an extended lease were worth £232,800. The average amount of ground rent was £45 billed monthly. The lease elapsed in 2090. Having 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.
In 2011 we were e-mailed by Mr and Mrs. M Clark who, having took over the lease of a ground floor apartment in Kilgetty in October 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable properties in Kilgetty with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed on 16 June 2101. Having 76 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.