Lampeter leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Lampeter residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Lampeter you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Lampeter flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Half a year ago Alfie, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Lampeter. Having bought his home two decades ago, the lease term was of minimal interest. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Alfie was able to extend his lease at the eleventh hour last June. Alfie and the landlord ultimately agreed on the final figure of £6,000 . If the lease had gone below eighty years, the amount would have become more exhorbitant by at least £1,025.
In 2011 we were approached by Mrs Naomi Ramírez who, having was assigned a lease of a garden apartment in Lampeter in September 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Lampeter with an extended lease were worth £210,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed on 7 January 2105. Given that there were 80 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
In 2012 we were called by Dr Kai Petit who, having bought a one bedroom flat in Lampeter in March 1996. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative flats in Lampeter with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 collected yearly. The lease end date was on 26 April 2094. Taking into account 69 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.