On the balance of probabilities if you own a flat in Whitland you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
Retaining our service will provide you increased control over the value of your Whitland leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Finn, started to get close to the 80-year mark with the lease on his garden apartment in Whitland. In buying his home 19 years previously, the lease term was of little significance. Luckily, he realised he needed to take action soon on a lease extension. Finn extended the lease at the eleventh hour in August. Finn and the freeholder subsequently agreed on sum of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £1,050.
In 2014 we were e-mailed by Mr and Mrs. F Fournier who, having purchased a garden flat in Whitland in March 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Whitland with a long lease were worth £267,600. The average ground rent payable was £65 billed every twelve months. The lease lapsed on 22 May 2091. Having 67 years unexpired we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.
Last Winter we were contacted by Dr D Gunderson , who purchased a ground floor apartment in Whitland in April 2000. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical flats in Whitland with 100 year plus lease were worth £201,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease lapsed in 2080. Having 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.