Whitland residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Whitland with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Whitland 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.
Off the back of lengthy negotiations with the landlord of her leasehold flat in Whitland, Rachel started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension completed in May 2006. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were called by Dr O Anderson , who acquired a first floor apartment in Whitland in April 2009. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in Whitland with an extended lease were valued around £290,000. The average ground rent payable was £45 collected yearly. The lease expired in 2098. Taking into account 73 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Mr and Mrs. Y Vincent purchased a studio apartment in Whitland in September 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Whitland with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 billed per annum. The lease ended on 23 October 2087. Considering the 62 years remaining we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.