Main reasons to commence your Sketty lease extension

Top reasons for lease extension now:

Increase your lease and increase your Sketty property value

The closer a domestic lease in Sketty nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Sketty will qualify for this right; that being said a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This will be problematic once you wish to sell or remortgage your flat as it will be effectively unmortgageable. Even though you might not have an immediate plan to sell but when you do your purchaser will need to hold off for a couple of years before they can initiate the legal procedures for a lease extension.

Get in touch with one of our Sketty lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure Sketty lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Sketty Lease Extension Example Cases:

Connor, Sketty, Swansea

In 2014 Connor, came precariously close to the 80-year threshold with the lease on his leasehold flat in Sketty. In buying his flat 19 years ago, the unexpired term was of little significance. Luckily, he noticed he needed to take action soon on Extending the lease. Connor extended the lease just in the nick of time in January. Connor and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £1,000.

Sketty case:

Dr Sebastian Bonnet completed a purpose-built apartment in Sketty in February 2012. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative properties in Sketty with a long lease were valued about £233,200. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2087. Taking into account 61 years left we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including costs.

Sketty case:

In 2014 we were contacted by Mr and Mrs. H Brooks who, having moved into a purpose-built flat in Sketty in February 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Sketty with 100 year plus lease were in the region of £171,800. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 19 October 2076. Considering the 50 years unexpired we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus expenses.