There is no doubt about it a leasehold flat or house in Skewen is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Skewen will meet the qualifying criteria; that being said a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| TSB |
The conveyancers that we work with procure Skewen 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.
Last Winter Lewis, started to get near to the 80-year threshold with the lease on his basement apartment in Skewen. Having purchased his property twenty years previously, the lease term was of little significance. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Lewis extended the lease just under the wire in April. Lewis and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If he not met the deadline, the price would have escalated by at least £1,025.
Last Christmas we were called by Dr K Carter , who completed a garden apartment in Skewen in May 2003. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Skewen with a long lease were in the region of £280,000. The average amount of ground rent was £55 invoiced monthly. The lease lapsed in 2104. Taking into account 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
In 2009 we were contacted by Ms Yasmin Turner who, having purchased a ground floor apartment in Skewen in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Skewen with 100 year plus lease were in the region of £186,000. The average ground rent payable was £65 collected monthly. The lease finished on 10 June 2084. Having 58 years as a residual term we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including costs.