When it comes to long leasehold premises in Kilgetty, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Anyone in Kilgetty with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When the lease term has below 80 years outstanding, under the relevant statute the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Kilgetty with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society | |
| TSB |
Using our service will provide you increased control over the value of your Kilgetty leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel owned a high value flat in Kilgetty being sold with a lease of a little over 61 years unexpired. Nathaniel informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and secured satisfactory deal informally and sell the flat.
Last Summer we were approach by Mr and Mrs. D Cook , who completed a first floor flat in Kilgetty in March 2005. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparative homes in Kilgetty with a long lease were worth £191,000. The average amount of ground rent was £65 billed yearly. The lease termination date was on 12 May 2084. Taking into account 58 years as a residual term we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus legals.
Mr and Mrs. B Watson completed a one bedroom apartment in Kilgetty in April 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Kilgetty with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2095. Taking into account 69 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.