There is no doubt about it a leasehold property in Lampeter is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Lampeter will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better 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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a high value apartment in Lampeter being marketed with a lease of a few days over fifty eight years left. Luca on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mrs Jodie Green took over the lease of a garden apartment in Lampeter in November 2007. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Lampeter with 100 year plus lease were valued around £206,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out in 2081. Given that there were 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
In 2011 we were phoned by Mr and Mrs. R Murphy who, having acquired a ground floor flat in Lampeter in November 2000. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparable flats in Lampeter with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out in 2101. Considering the 76 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.