Whitland residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 landlord in Whitland,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitland valuers.
Oscar was the the leasehold owner of a conversion apartment in Whitland being sold with a lease of a few days over 72 years unexpired. Oscar on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Ms Lauren Cook was assigned a lease of a basement flat in Whitland in June 2003. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar homes in Whitland with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 8 April 2091. Taking into account 65 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus costs.
Last Christmas we were e-mailed by Mr and Mrs. L Simon , who owned a one bedroom apartment in Whitland in September 2011. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical residencies in Whitland with 100 year plus lease were valued about £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 22 March 2080. Taking into account 54 years left we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.