Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Lampeter. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Lampeter have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give careful deliberation before putting off your Lampeter lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Lampeter with more than 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 will provide you enhanced control over the value of your Lampeter leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luke, started to get near to the 80-year mark with the lease on his purpose- built flat in Lampeter. Having purchased his flat two decades ago, the lease term was of no significance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Luke extended the lease at the eleventh hour in September. Luke and the freeholder subsequently agreed on an amount of £5,000 . If the lease had slipped below eighty years, the sum would have escalated by a minimum £1,150.
Last Christmas we were contacted by Mr and Mrs. G Phillips , who owned a one bedroom apartment in Lampeter in October 2007. The question was if we could estimate the price would be for a ninety year lease extension. Similar premises in Lampeter with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 collected yearly. The lease ended in 2096. Taking into account 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2010 we were phoned by Dr Logan Anderson who, having moved into a one bedroom flat in Lampeter in April 1996. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable homes in Lampeter with a long lease were worth £225,800. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 26 January 2085. Given that there were 60 years outstanding we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 plus costs.