Unfortunately that a Skewen residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Skewen property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Most flat owners in Skewen will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Skewen can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Skewen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oliver owned a studio flat in Skewen on the market with a lease of fraction over fifty eight years outstanding. Oliver informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Mrs Millie Williams acquired a first floor apartment in Skewen in May 1996. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar premises in Skewen with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 billed yearly. The lease finished in 2090. Considering the 64 years unexpired we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.
Ms Sophia Dupont took over the lease of a one bedroom flat in Skewen in November 2007. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Skewen with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 21 March 2101. Considering the 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.