Unfortunately that a Margam residential lease is a deteriorating asset. The lease value drops 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 Margam property prices.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 slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Margam will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Margam with in excess of one hundred 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Margam leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ali was the the leasehold proprietor of a high value flat in Margam being marketed with a lease of fraction over sixty years unexpired. Ali on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were approach by Mr Aarav Scott , who acquired a newly refurbished apartment in Margam in April 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Margam with an extended lease were worth £246,800. The average ground rent payable was £60 billed per annum. The lease termination date was in 2076. Having 50 years as a residual term we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.
Mr and Mrs. N Robinson moved into a first floor flat in Margam in June 2004. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative homes in Margam with an extended lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced monthly. The lease expired on 27 February 2087. Considering the 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.