There is no doubt about it a leasehold flat or house in Neath Abbey is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 100 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Neath Abbey will meet the qualifying criteria; however a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Neath Abbey with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Neath Abbey,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Neath Abbey valuers.
Felix owned a conversion apartment in Neath Abbey being marketed with a lease of a little over 72 years remaining. Felix on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2012 we were contacted by Dr Ali Williams who, having completed a purpose-built flat in Neath Abbey in March 2005. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative premises in Neath Abbey with an extended lease were valued about £267,600. The average amount of ground rent was £65 invoiced quarterly. The lease terminated in 2093. Considering the 67 years left we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of fees.
Last Autumn we were approach by Dr N Lefèvre , who moved into a one bedroom flat in Neath Abbey in June 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Neath Abbey with an extended lease were worth £206,200. The mid-range amount of ground rent was £55 billed monthly. The lease ran out on 21 January 2082. Having 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus legals.