When it comes to domestic leasehold premises in Lampeter, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years remaining. Anyone in Lampeter with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant legislation the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Lampeter with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lampeter can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience procuring Lampeter lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ibrahim owned a high value flat in Lampeter being marketed with a lease of just over sixty years unexpired. Ibrahim informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms Millie Thompson was assigned a lease of a studio flat in Lampeter in January 2003. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Lampeter with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish on 28 August 2101. Given that there were 75 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
In 2012 we were contacted by Ms P Allen who, having completed a purpose-built flat in Lampeter in August 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Lampeter with a long lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease expired on 24 July 2090. Considering the 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.