For anyone whose Whitland flat is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent 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 in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Whitland can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 dealing with Whitland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Gabriel, started to get near to the eighty-year mark with the lease on his basement flat in Whitland. In buying his flat 18 years previously, the lease term was of minimal interest. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Gabriel was able to extend his lease at the eleventh hour in April. Gabriel and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had slid lower than 80 years, the figure would have escalated by at least £1,125.
Ms Niamh François purchased a purpose-built apartment in Whitland in February 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Whitland with 100 year plus lease were worth £295,000. The average ground rent payable was £45 billed per annum. The lease came to a finish on 3 July 2100. Considering the 74 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
In 2009 we were contacted by Mr and Mrs. A Bell who, having took over the lease of a purpose-built flat in Whitland in October 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Whitland with a long lease were worth £243,000. The average ground rent payable was £65 invoiced yearly. The lease finished on 9 September 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.