When it comes to residential leasehold premises in Fforestfach, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Residents in Fforestfach with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Fforestfach with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Fforestfach,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fforestfach valuers.
In 2014 Samuel, came dangerously close to the eighty-year mark with the lease on his ground floor apartment in Fforestfach. Having bought his property 18 years previously, the lease term was of little relevance. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Samuel arranged for a lease extension just ahead of time in June. Samuel and the landlord in the end settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £975.
Mr Freddie Scott took over the lease of a one bedroom apartment in Fforestfach in February 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Fforestfach with 100 year plus lease were valued around £174,200. The mid-range ground rent payable was £55 collected annually. The lease came to a finish on 22 November 2076. Considering the 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.
In 2013 we were called by Ms Aimee Lewis who, having bought a recently refurbished flat in Fforestfach in May 2003. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Identical premises in Fforestfach with an extended lease were valued around £285,000. The average amount of ground rent was £45 collected per annum. The lease expired in 2096. Given that there were 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.