There is no doubt about it a leasehold flat or house in Whitland is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Whitland will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Whitland with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you better control over the value of your Whitland leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a 2 bedroom flat in Whitland being sold with a lease of fraction over 61 years remaining. Lucas on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Summer we were phoned by Dr E Smith , who purchased a newly refurbished flat in Whitland in June 1995. The question was if we could approximate the price could be for a ninety year lease extension. Identical properties in Whitland with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated in 2098. Having 72 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Dr B Thompson moved into a basement apartment in Whitland in January 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar residencies in Whitland with an extended lease were worth £233,200. The mid-range ground rent payable was £60 collected yearly. The lease expired in 2087. Given that there were 61 years unexpired we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including fees.