It’s an underpublicised truth that a Machynlleth residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Machynlleth property prices.Where your lease has approximately ninety years left, you need to 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 slips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Machynlleth will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Machynlleth with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Halifax | |
| TSB | |
| Yorkshire Building Society |
Using our service will provide you increased control over the value of your Machynlleth leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Charlie, started to get close to the eighty-year mark with the lease on his one bedroom flat in Machynlleth. In buying his home twenty years ago, the unexpired term was of minimal bearing. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Charlie extended the lease just under the wire last June. Charlie and the landlord in the end settled on sum of £5,500 . If he not met the deadline, the price would have increased by at least £975.
In 2010 we were contacted by Dr V López who, having acquired a studio flat in Machynlleth in October 2007. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical residencies in Machynlleth with 100 year plus lease were valued around £246,800. The mid-range amount of ground rent was £60 collected annually. The lease lapsed in 2076. Considering the 50 years unexpired we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including professional charges.
In 2014 we were contacted by Mr and Mrs. M Harris who, having moved into a garden flat in Machynlleth in November 2004. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable flats in Machynlleth with a long lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2087. Considering the 61 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.