The market value of Lampeter leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
Leasehold residencies in Lampeter with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Lampeter,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lampeter valuers.
Kian owned a high value apartment in Lampeter being marketed with a lease of a little over 72 years outstanding. Kian informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Christmas we were phoned by Dr Harvey Wright , who took over the lease of a recently refurbished flat in Lampeter in April 2000. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Identical homes in Lampeter with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease ended in 2087. Having 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.
Dr A Wood bought a one bedroom apartment in Lampeter in October 2011. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Lampeter with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded on 1 February 2076. Given that there were 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus fees.