Unfortunately that a Dunvant residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Dunvant property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Dunvant will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society |
Engaging our service gives you enhanced control over the value of your Dunvant leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie owned a studio flat in Dunvant being sold with a lease of a few days over sixty years left. Alfie on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2009 we were e-mailed by Mrs Abbie Moore who, having acquired a recently refurbished apartment in Dunvant in April 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Dunvant with an extended lease were worth £191,400. The average ground rent payable was £55 billed monthly. The lease ended in 2080. Having 54 years left we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus costs.
Dr Morgan Carter moved into a basement apartment in Dunvant in August 2007. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Dunvant with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 6 April 2100. Considering the 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.