As the length of the unexpired term of a Lampeter domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than 125 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 remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Lampeter will meet the qualifying criteria; that being said a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her first floor apartment in Lampeter, Francesca started the lease extension process as the eighty year threshold was quickly nearing. The lease extension was concluded in April 2009. The freeholder’s charges were restricted to under 500 GBP.
Mr and Mrs. G Jones owned a recently refurbished flat in Lampeter in July 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical premises in Lampeter with an extended lease were valued about £174,200. The average amount of ground rent was £55 billed per annum. The lease finished in 2076. Considering the 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.
Last Christmas we were e-mailed by Mr and Mrs. J Reed , who owned a ground floor apartment in Lampeter in July 2006. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable homes in Lampeter with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced annually. The lease ran out in 2096. Considering the 71 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.