It’s a harsh certainty that a Whitland residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Whitland property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most leasehold owners in Whitland will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Whitland with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
Lender | Requirement |
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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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | 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. |
Irrespective of whether you are a tenant or a landlord in Whitland,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whitland valuers.
Finn owned a studio apartment in Whitland on the market with a lease of fraction over sixty years remaining. Finn on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. I Simon moved into a one bedroom apartment in Whitland in September 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Whitland with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 collected per annum. The lease ended in 2090. Having 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including expenses.
Mr and Mrs. W Anderson was assigned a lease of a first floor apartment in Whitland in April 2012. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Whitland with a long lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 26 May 2079. Taking into account 55 years unexpired we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of legals.