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Top reasons for Whitland lease extension

Main reasons to commence your Whitland lease extension today:

Increase your lease and increase your Whitland property value

Whitland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Whitland tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Whitland you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred 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 remaining, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage with a short lease

Lenders are tightening their criteria and many now expect flats to have a minimum of 60 if not 70 years remaining at the expiry of the mortgage. Considering a number of flats in Whitland were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

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.
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

Why use us for your lease extension in Whitland?

Lease extensions in Whitland can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Whitland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Whitland Lease Extension Case Summaries:

Zoe, Whitland, Ammanford,

Off the back of unsuccessful discussions with the landlord of her studio apartment in Whitland, Zoe commenced the lease extension process as the eighty year deadline was swiftly coming. The transaction completed in February 2005. The landlord’s charges were negotiated to below 600 GBP.

Whitland case:

In 2011 we were called by Mr and Mrs. K David who, having bought a ground floor flat in Whitland in February 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Whitland with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected annually. The lease ended on 28 November 2079. Given that there were 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of costs.

Whitland case:

In 2009 we were approached by Mr H Ramírez who, having acquired a basement flat in Whitland in January 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Whitland with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated on 14 May 2099. Taking into account 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.