With a residential leasehold premises in Margam, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Anyone in Margam with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has fewer than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Margam with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Margam lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Isaac, came precariously close to the eighty-year threshold with the lease on his leasehold flat in Margam. Having bought his property twenty years ago, the lease term was of no bearing. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Isaac extended the lease just ahead of time last August. Isaac and the landlord subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £950.
Ms P Howard acquired a one bedroom flat in Margam in April 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Margam with 100 year plus lease were in the region of £215,600. The average ground rent payable was £45 collected annually. The lease concluded on 22 June 2088. Considering the 62 years outstanding we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.
In 2009 we were approached by Mr and Mrs. D Watson who, having completed a studio flat in Margam in February 2002. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative homes in Margam with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded on 25 July 2099. Considering the 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.