As the the remaining lease term of a Lampeter domestic lease decreases so does its value and therefore the value of your property. If the lease has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Lampeter will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Lampeter with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Lampeter 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 lawyer we work with provide it.
Following unsuccessful discussions with the freeholder of her purpose-built apartment in Lampeter, Alicia started the lease extension process as the eighty year threshold was fast nearing. The lease extension was concluded in November 2011. The landlord’s costs were kept to an absolute minimum.
Last May we were e-mailed by Ms R Bernard , who moved into a one bedroom apartment in Lampeter in March 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Lampeter with an extended lease were in the region of £260,200. The average ground rent payable was £65 billed yearly. The lease terminated in 2092. Considering the 66 years remaining we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.
Last Winter we were approach by Mr and Mrs. B Miller , who bought a basement flat in Lampeter in October 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Lampeter with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed per annum. The lease expired in 2081. Given that there were 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including fees.