The nearer a residential lease in St Clears nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Many flat owners in St Clears will qualify for this right; nevertheless a conveyancer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 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 experience and the close ties they enjoy with St Clears valuers.
During the course of the last few months Harvey, came seriously close to the 80-year mark with the lease on his purpose- built apartment in St Clears. Having bought his home 18 years previously, the unexpired term was of minimal significance. Thankfully, he realised he needed to take action soon on Extending the lease. Harvey extended the lease just in the nick of time last June. Harvey and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £1,050.
In 2012 we were phoned by Dr T White who, having owned a studio flat in St Clears in July 2010. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar residencies in St Clears with a long lease were in the region of £168,800. The average amount of ground rent was £60 collected yearly. The lease terminated in 2080. Given that there were 55 years left we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus professional charges.
Last year we were e-mailed by Mrs Isobel Gómez , who was assigned a lease of a one bedroom flat in St Clears in November 2004. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative properties in St Clears with a long lease were worth £235,200. The average amount of ground rent was £45 collected annually. The lease lapsed on 14 July 2091. Given that there were 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.