Unfortunately that a Bassaleg residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Bassaleg property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Bassaleg will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Bassaleg with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Bassaleg 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.
Dexter owned a studio flat in Bassaleg being sold with a lease of a little over 72 years left. Dexter informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. N Girard was assigned a lease of a newly refurbished flat in Bassaleg in May 1998. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable flats in Bassaleg with an extended lease were valued about £189,000. The mid-range ground rent payable was £55 billed per annum. The lease termination date was in 2079. Taking into account 53 years as a residual term we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.
In 2010 we were phoned by Dr Ella Michel who, having owned a one bedroom flat in Bassaleg in April 2004. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable premises in Bassaleg with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease finished on 17 May 2099. Having 73 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.