Unfortunately that a Gorseinon residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Gorseinon property market.Where your lease has approximately ninety years left, you should start considering 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 below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Gorseinon will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. 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 lawyer from beginning to end of the formalities.
Leasehold residencies in Gorseinon with in excess of 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Retaining our service will provide you better control over the value of your Gorseinon leasehold, as your property will be more valuable and saleable 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.
Tyler owned a high value flat in Gorseinon being sold with a lease of a little over 59 years remaining. Tyler on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Mr Oliver Thomas who, having moved into a one bedroom flat in Gorseinon in July 2009. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable premises in Gorseinon with a long lease were valued about £208,600. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2083. Given that there were 57 years remaining we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Mr M Ricardo completed a ground floor flat in Gorseinon in September 1998. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar homes in Gorseinon with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed on 9 February 2103. Given that there were 77 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.