For anyone whose Saundersfoot home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Saundersfoot with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Saundersfoot,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saundersfoot valuers.
Trailing lengthy negotiations with the landlord of her garden flat in Saundersfoot, Amber initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension completed in July 2013. The freeholder’s costs were restricted to approximately 500 GBP.
Last year we were contacted by Mrs Alisha Moore , who completed a ground floor apartment in Saundersfoot in August 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical properties in Saundersfoot with an extended lease were valued around £255,000. The average amount of ground rent was £50 collected per annum. The lease terminated on 5 January 2097. Having 71 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. W Wood completed a newly refurbished flat in Saundersfoot in June 2003. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Saundersfoot with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease terminated in 2077. Having 51 years remaining we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including professional charges.