With a long leasehold property in Lampeter, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Lampeter with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has less than eighty years remaining, under the current legislation the landlord can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with handle Lampeter 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.
Henry owned a high value apartment in Lampeter on the market with a lease of fraction over 72 years outstanding. Henry informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Christmas we were phoned by Dr Morgan Mitchell , who owned a first floor flat in Lampeter in June 1998. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable properties in Lampeter with an extended lease were worth £189,000. The average ground rent payable was £55 collected annually. The lease expired on 8 June 2078. Taking into account 53 years unexpired we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
In 2009 we were e-mailed by Mrs Jennifer Bonnet who, having took over the lease of a garden apartment in Lampeter in August 2001. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative premises in Lampeter with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was on 25 September 2098. Given that there were 73 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.