The market value of a leasehold property in Margam depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed ahead of the eighty year mark. Leasehold Reform legislation enables Margam qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Margam with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Margam,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Margam valuers.
Off the back of protracted correspondence with the freeholder of her two bedroom apartment in Margam, Freya started the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was finalised in January 2012. The landlord’s charges were kept to an absolute minimum.
Mr Eliot Davis completed a purpose-built flat in Margam in August 2002. The question was if we could approximate the price could be to extend the lease by ninety years. Identical flats in Margam with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease finished in 2098. Given that there were 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last Spring we were contacted by Dr I Howard , who acquired a one bedroom flat in Margam in March 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable residencies in Margam with a long lease were worth £264,000. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed in 2078. Given that there were 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including expenses.