It’s an underpublicised truth that a Magor residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Magor 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 falls below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Magor will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines 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.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Engaging our service will provide you enhanced control over the value of your Magor leasehold, as your property will be more valuable and marketable 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.
Off the back of unsuccessful negotiations with the freeholder of her two bedroom flat in Magor, Mollie initiated the lease extension process as the eighty year mark was rapidly coming. The legal work completed in September 2011. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. G Lefèvre who, having bought a ground floor apartment in Magor in September 1996. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical residencies in Magor with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed on 14 June 2095. Given that there were 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2009 we were approached by Mrs Francesca King who, having was assigned a lease of a studio apartment in Magor in March 1998. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative residencies in Magor with 100 year plus lease were worth £290,000. The average ground rent payable was £60 billed monthly. The lease terminated on 20 September 2106. Taking into account 80 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.