When it comes to domestic leasehold property in Mid Wales, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Anyone in Mid Wales with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Retaining our service gives you better control over the value of your Mid Wales 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.
Thomas was the the leasehold owner of a conversion flat in Mid Wales being sold with a lease of a little over 61 years unexpired. Thomas on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last May we were called by Mr and Mrs. V Martínez , who purchased a basement apartment in Mid Wales in August 1998. The question was if we could approximate the premium could be to prolong the lease by an additional years. Identical flats in Mid Wales with a long lease were worth £300,000. The average ground rent payable was £50 billed yearly. The lease terminated on 2 August 2101. Having 75 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Dr N Walker acquired a one bedroom flat in Mid Wales in February 2011. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable homes in Mid Wales with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced every twelve months. The lease ended on 7 May 2090. Considering the 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus fees.