Main reasons to commence your Sketty lease extension

Top reasons for lease extension now:

Increase your lease and increase your Sketty property value

When it comes to long leasehold property in Sketty, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Sketty with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has below eighty years remaining, under the relevant statute the landlord can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is due.

Sketty property with a lease extension is almost the same value as a freehold

Leasehold properties in Sketty with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not finance a property with a short lease

Most mortgage companies require a lengthy amount of time left on any leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to buy your property in the future might well do, so if they can't get a mortgage, then the financial worth of the property could suffer. In the last decade many banks and building societies have increased the required minimum lease length that they are willing to accept

What makes us experts in Sketty lease extensions?

Irrespective of whether you are a tenant or a landlord in Sketty,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sketty valuers.

Sketty Lease Extension Example Cases:

Harvey, Sketty, Swansea,

Harvey owned a 2 bedroom flat in Sketty being sold with a lease of fraction over 61 years unexpired. Harvey informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Sketty case:

Dr E Leroy was assigned a lease of a one bedroom flat in Sketty in October 1998. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Sketty with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease ran out in 2099. Taking into account 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.

Sketty case:

Mr A Leroy owned a one bedroom flat in Sketty in March 2009. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Sketty with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £60 invoiced annually. The lease terminated in 2088. Having 62 years remaining we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.