It’s a harsh certainty that a Fforestfach residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Fforestfach property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Fforestfach will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| TSB | |
| Yorkshire Building Society |
Engaging our service gives you better control over the value of your Fforestfach leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ali was the the leasehold owner of a 2 bedroom apartment in Fforestfach on the market with a lease of fraction over sixty years left. Ali informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen 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 doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2012 we were contacted by Mr and Mrs. F Mitchell who, having bought a studio apartment in Fforestfach in March 1995. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable properties in Fforestfach with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed on 3 May 2103. Considering the 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Last November we were approach by Dr Leo Phillips , who was assigned a lease of a first floor flat in Fforestfach in May 2012. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Fforestfach with a long lease were worth £260,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out on 6 November 2092. Taking into account 66 years remaining we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus legals.