When it comes to long leasehold property in St Davids, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Leasehold owners in St Davids with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you increased control over the value of your St Davids leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Benjamin, came perilously close to the 80-year mark with the lease on his one bedroom apartment in St Davids. In buying his property 19 years ago, the length of the lease was of no concern. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Benjamin arranged for a lease extension at the eleventh hour last May. Benjamin and the freeholder subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
Mr and Mrs. U Adams completed a garden apartment in St Davids in April 1997. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable properties in St Davids with an extended lease were valued around £243,000. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2088. Taking into account 63 years unexpired we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.
Mr and Mrs. M David bought a purpose-built flat in St Davids in February 2011. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative premises in St Davids with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed monthly. The lease expired in 2077. Having 52 years remaining we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.