The market value of a leasehold property in Port Talbot depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year cut off point. Statute enables Port Talbot qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Port Talbot with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Port Talbot can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Port Talbot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Sebastian, started to get close to the 80-year mark with the lease on his one bedroom flat in Port Talbot. In buying his property two decades ago, the length of the lease was of little significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Sebastian arranged for a lease extension just in the nick of time in July. Sebastian and the landlord in the end agreed on sum of £5,000 . If the lease had dipped to less than 80 years, the figure would have escalated by at least £1,025.
Mr V Lewis took over the lease of a one bedroom apartment in Port Talbot in February 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Port Talbot with an extended lease were valued about £223,400. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2085. Taking into account 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of fees.
Ms Molly Smith completed a studio flat in Port Talbot in November 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative flats in Port Talbot with 100 year plus lease were worth £205,000. The average ground rent payable was £50 collected per annum. The lease came to a finish on 27 October 2105. Taking into account 79 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.