The re-sale value of a leasehold property in St Clears depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded ahead of the eighty year mark. Leasehold Reform legislation enables St Clears qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in St Clears,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 St Clears valuers.
In 2014 Max, started to get close to the eighty-year threshold with the lease on his ground floor apartment in St Clears. Having purchased his flat 18 years previously, the length of the lease was of minimal relevance. Luckily, he realised he would imminently be paying an inflated amount for a lease extension. Max extended the lease just in the nick of time in March. Max and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had fallen to less than eighty years, the sum would have become more exhorbitant by a minimum £1,050.
In 2011 we were contacted by Mr and Mrs. A Reed who, having purchased a first floor flat in St Clears in August 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical homes in St Clears with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated in 2104. Having 79 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Mrs A Alexander acquired a newly refurbished apartment in St Clears in January 2000. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparative residencies in St Clears with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 invoiced annually. The lease end date was in 2084. Considering the 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.