Why you should commence your Morriston lease extension

Why you should commence your Morriston lease extension today:

Increase your lease and increase your Morriston property value

With a residential leasehold premises in Morriston, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Residents in Morriston with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has less than eighty years outstanding, under the relevant statute the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.

Morriston property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Morriston with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to lend on a short lease

Banks and building societies are making their criteria more stringent and many now require flats to have at least 60 if not 70 years left once the mortgage has expired. Considering many flats in Morriston were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

What makes us experts in Morriston lease extensions?

Irrespective of whether you are a tenant or a freeholder in Morriston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Morriston valuers.

Morriston Lease Extension Example Cases:

Benjamin, Morriston, Swansea,

Benjamin owned a conversion apartment in Morriston being marketed with a lease of fraction over sixty years unexpired. Benjamin on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured satisfactory resolution informally and sell the flat.

Morriston case:

In 2013 we were e-mailed by Mr B Ali who, having acquired a purpose-built flat in Morriston in August 2012. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar premises in Morriston with 100 year plus lease were valued about £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed on 26 February 2078. Given that there were 52 years left we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus fees.

Morriston case:

In 2011 we were contacted by Mr and Mrs. U Gunderson who, having moved into a one bedroom flat in Morriston in June 1999. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Morriston with an extended lease were worth £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2089. Taking into account 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus fees.