There is no doubt about it a leasehold property in Margam is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Margam will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Margam with more than one hundred years unexpired 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the freeholder of her two bedroom apartment in Margam, Natalie started the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction completed in July 2009. The freeholder’s charges were restricted to less than 700 pounds.
Mr and Mrs. D Williams bought a garden flat in Margam in November 2008. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical residencies in Margam with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed annually. The lease terminated in 2101. Having 75 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2013 we were phoned by Mr and Mrs. O Rivera who, having took over the lease of a purpose-built apartment in Margam in November 2000. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable premises in Margam with a long lease were worth £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease expired on 22 February 2080. Considering the 54 years unexpired we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.