With a long leasehold property in St Clears, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in St Clears with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years left, under the current statute the freeholder can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle St Clears 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 lawyer we work with provide it.
Two years ago George, came very near to the eighty-year mark with the lease on his garden flat in St Clears. In buying his property 19 years previously, the length of the lease was of minimal interest. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. George was able to extend his lease just in the nick of time last May. George and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by a minimum £850.
In 2013 we were called by Mr and Mrs. D Michel who, having acquired a one bedroom apartment in St Clears in January 2008. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable residencies in St Clears with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 billed yearly. The lease expired on 28 February 2099. Taking into account 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Dr Grace Rogers acquired a purpose-built apartment in St Clears in July 2006. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative properties in St Clears with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease ran out on 14 January 2079. Considering the 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.