When it comes to long leasehold property in Whitland, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Residents in Whitland with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Whitland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following unsuccessful negotiations with the freeholder of her first floor flat in Whitland, Ella started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction was finalised in August 2014. The landlord’s fees were negotiated to under 450 GBP.
Dr Riley Laurent acquired a basement flat in Whitland in June 2006. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Whitland with an extended lease were worth £267,600. The average amount of ground rent was £65 billed every twelve months. The lease expired in 2092. Having 67 years as a residual term we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including costs.
Last month we were e-mailed by Mr and Mrs. H Young , who owned a newly refurbished apartment in Whitland in November 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical homes in Whitland with 100 year plus lease were in the region of £206,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2081. Considering the 56 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.