The market value of a leasehold property in Sketty depends on how many years the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised in advance of the 80 year threshold. Current legislation entitles Sketty qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose 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.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Sketty can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Sketty lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hunter was the the leasehold owner of a high value apartment in Sketty on the market with a lease of fraction over sixty years remaining. Hunter on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. J Petit owned a garden apartment in Sketty in March 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Sketty with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 collected annually. The lease expired on 21 March 2106. Considering the 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
In 2012 we were e-mailed by Mr and Mrs. C Patel who, having acquired a garden apartment in Sketty in September 1995. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar properties in Sketty with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease end date was on 2 September 2095. Taking into account 69 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.