Whitland residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Whitland can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge dealing with Whitland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her studio flat in Whitland, Emily initiated the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was finalised in October 2009. The landlord’s costs were negotiated to slightly above 600 GBP.
Last year we were contacted by Dr Luke Robinson , who completed a basement apartment in Whitland in September 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Whitland with a long lease were valued about £210,000. The average ground rent payable was £50 collected every twelve months. The lease terminated in 2105. Given that there were 80 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
Dr L Bell bought a garden apartment in Whitland in January 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative premises in Whitland with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 collected annually. The lease expiry date was on 17 May 2094. Taking into account 69 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.