Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Gorseinon. Inevitably, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Gorseinon have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give careful consideration before putting off your Gorseinon lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Gorseinon leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Eliot, started to get near to the eighty-year threshold with the lease on his first floor flat in Gorseinon. In buying his property 19 years ago, the lease term was of no interest. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Eliot was able to extend his lease just under the wire last March. Eliot and the freeholder ultimately agreed on an amount of £6,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,000.
Last August we were approach by Mr H Baker , who completed a garden flat in Gorseinon in November 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Gorseinon with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 15 September 2102. Considering the 76 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Mrs Y Jackson purchased a newly refurbished flat in Gorseinon in January 2001. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative flats in Gorseinon with an extended lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out in 2091. Considering the 65 years remaining we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.