There is no doubt about it a leasehold flat or house in Saundersfoot is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Saundersfoot will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Saundersfoot valuers.
After lengthy discussions with the landlord of her first floor flat in Saundersfoot, Katie commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction was finalised in November 2008. The landlord’s fees were kept to an absolute minimum.
Dr T Sharif acquired a recently refurbished apartment in Saundersfoot in November 2004. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Saundersfoot with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 23 February 2094. Taking into account 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Mr H Moore owned a first floor flat in Saundersfoot in June 2011. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical properties in Saundersfoot with a long lease were valued around £285,000. The average ground rent payable was £55 collected yearly. The lease ran out on 20 September 2105. Having 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.