Lampeter leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Lampeter will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Lampeter with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Lampeter leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Theo owned a conversion flat in Lampeter on the market with a lease of just over 61 years unexpired. Theo on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. I Ali who, having moved into a purpose-built apartment in Lampeter in July 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Lampeter with a long lease were worth £216,000. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2084. Taking into account 58 years left we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
Last Summer we were phoned by Mr and Mrs. U Díaz , who moved into a one bedroom flat in Lampeter in October 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Lampeter with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished in 2104. Having 78 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.