Lampeter leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Lampeter enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lampeter you would be well advised to check if your lease has between seventy and 90 years remaining. There are good reasons why a Lampeter flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Lampeter with more than 100 years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Lampeter, Georgina commenced the lease extension process as the eighty year threshold was quickly approaching. The legal work was concluded in October 2010. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were contacted by Ms Sarah Miller who, having was assigned a lease of a one bedroom apartment in Lampeter in September 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Lampeter with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease termination date was on 6 April 2100. Considering the 74 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Ms Shannon Roux purchased a recently refurbished flat in Lampeter in October 1998. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative residencies in Lampeter with a long lease were worth £243,000. The average ground rent payable was £65 billed quarterly. The lease came to a finish on 5 May 2089. Taking into account 63 years left we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of costs.