Lampeter leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Lampeter will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 landlord in Lampeter,the lease extension solicitors that we work with will always be willing 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.
Off the back of lengthy correspondence with the landlord of her two bedroom apartment in Lampeter, Rebecca started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in August 2013. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were approach by Dr J Mason , who was assigned a lease of a basement apartment in Lampeter in February 2008. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Lampeter with 100 year plus lease were valued around £240,600. The average ground rent payable was £60 collected every twelve months. The lease concluded on 21 November 2088. Given that there were 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including legals.
Last Winter we were called by Ms Amelia Davis , who took over the lease of a newly refurbished flat in Lampeter in September 2000. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable premises in Lampeter with an extended lease were worth £174,200. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was on 8 June 2077. Taking into account 51 years outstanding we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.