When it comes to residential leasehold premises in Gower, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Gower with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service will provide you better control over the value of your Gower leasehold, as your property will be more valuable and saleable in relation to the 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.
Last October Harvey, came dangerously close to the 80-year mark with the lease on his garden flat in Gower. Having bought his property 19 years previously, the length of the lease was of minimal interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Harvey extended the lease just in the nick of time in July. Harvey and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,075.
In 2014 we were phoned by Mr H Watson who, having was assigned a lease of a first floor flat in Gower in November 2004. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical residencies in Gower with a long lease were in the region of £237,600. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2093. Having 67 years outstanding we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.
Last Christmas we were called by Mr B James , who was assigned a lease of a studio apartment in Gower in November 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Gower with a long lease were valued around £280,000. The average ground rent payable was £55 invoiced annually. The lease end date was on 10 October 2103. Given that there were 77 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.