It’s a harsh truth that a Morriston residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Morriston property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most flat owners in Morriston will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 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 equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Morriston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Freddie, came very close to the eighty-year mark with the lease on his leasehold flat in Morriston. Having bought his home two decades ago, the lease term was of no bearing. Luckily, he realised he needed to take action soon on Extending the lease. Freddie arranged for a lease extension just in the nick of time last June. Freddie and the freeholder via the managing agents ultimately settled on sum of £5,000 . If the lease had fallen below eighty years, the figure would have become more exhorbitant by a minimum £850.
Mr Benjamin Flores owned a ground floor apartment in Morriston in June 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Morriston with a long lease were in the region of £220,400. The average ground rent payable was £45 collected monthly. The lease lapsed on 18 July 2090. Considering the 64 years left we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus costs.
In 2012 we were phoned by Mr Harry Brown who, having owned a one bedroom flat in Morriston in November 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical flats in Morriston with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish on 12 September 2101. Having 75 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.