With a residential leasehold premises in Fishguard, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Fishguard with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has fewer than eighty years remaining, under the relevant statute the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Fishguard with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Using our service gives you increased control over the value of your Fishguard leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Sebastian, started to get close to the eighty-year mark with the lease on his two bedroom flat in Fishguard. Having bought his property 19 years ago, the unexpired term was of no importance. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Sebastian was able to extend his lease just under the wire in September. Sebastian and the landlord in the end agreed on a premium of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by at least £925.
Last June we were phoned by Mr Mason Wilson , who was assigned a lease of a one bedroom apartment in Fishguard in September 2010. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Comparative premises in Fishguard with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 billed quarterly. The lease ran out in 2095. Having 69 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
In 2012 we were approached by Mr and Mrs. A White who, having purchased a first floor flat in Fishguard in May 2007. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable flats in Fishguard with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 billed annually. The lease ran out on 9 August 2084. Having 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.